Our home is probably the biggest investment that we’ll ever make in our lives, and finding a good home insurance policy is very important, as it will be protecting our investment against losses, damage, and more.
The most important thing to consider when purchasing home insurance on a budget isn’t necessarily the price, but actually looking at what is covered and what services are offered, so that there are no surprises when something actually happens.
First, you should examine the coverage, as each company provides very different coverage options. Then, you should be very careful when it comes time to place a value on your goods. Only include items that are very likely to be stolen or broken, those that are most important to you. But, you also don’t want to leave out something that you thought would never be damaged that in the end could be. The best option is to have an expert come and evaluate your home and let you know what the best value would be. If you pay too little, you risk losing too much, however, you can also be paying too much and not be running much risk of anything happening, thus driving up the cost of your policy.
Be sure not to include the actual ground that your home sits on, either. When you are looking at the cost of reconstruction, don’t put down what it cost you to purchase the entire property and house. The property is very unlikely to be damaged and impossible to be stolen. Thus, include only the value of your house and other buildings on the property.
Next, a good tip for finding the best insurance is to NOT take the first option that comes to you. Go to several banks or insurance companies and compare prices, coverage, limitations and exclusions on each policy. You may just find incredibly different results. And, don’t forget to read the small print!
You may be uncomfortable, but you shouldn’t be when asking about policies. The key is to ask, ask, ask! You should get all of your doubts cleared up. The person that is helping you should be respectful and patient. Ask them to help you interpret the most complex clauses and to explain things to you without all the technical wording. It’s important to know exactly what you are getting.
Don’t forget to ask about the premium, if it can be divided into monthly, bi annual or annual payments. You need to know how much that would cost, and when commissions and interest go up, as well as the taxes you’ll need to pay.
While there are many things to consider when purchasing home insurance, it is worth all the time it will take to sift through it all. In the end, you’ll know better what is covered, you’ll feel better about what is covered, you’ll probably be paying less, and overall will have a much better experience than if you were to just take the first policy that comes into your hands.