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June 28, 2017

What Should You Avoid When Buying Home Insurance

insurance for your homeBuying home insurance is a tricky task. With thousands of policy types and providers, it could be a daunting challenge. A lot of people make mistakes when buying a home insurance. Both the first-time and experienced home insurance buyers make mistakes. Those mistakes may cost them a lot in a long run, and they usually refer to two things. The first one is an inflated premium. The second mistake refers to the incomplete policy coverage. A low-cost policy quite often doesn’t cover all the things your home needs.

Whether you’re renewing or buying insurance for the first time, be aware of some mistakes. Below, you can find out about things to avoid and possible solutions.

Incorrect coverage amount

Most people choose a wrong coverage because they replace the real and market value of their home. Others are prone to overestimate the coverage amount. Those people identify home insurance with dwelling coverage. It pays in case of a damage caused by a covered danger like hail, storm, fire, and so on. The amount of dwelling coverage has an effect on limits for other coverages. For example, the limit for the contents coverage is set at 50%-70% of the dwelling coverage. So, how to evaluate the right dwelling coverage? There are various online home insurance calculators that address this issue.

Insufficient coverage for home rebuild

The majority of houses are not valued for insurance purpose. What would happen if those houses get destroyed beyond repair? The homeowners will not have enough insurance coverage to rebuild their homes.

How to avoid this mistake? It’s a good idea to hire a cost estimator who specializes in home replacement. You may also contact your contractor or a local builder. This is a cheaper option, but the assessment is not that precise as you get by a professional cost estimator. Once you’ve found out how much it costs to rebuild your house, you need to determine insurance coverage. Make sure to include all the valuables and improvements you have recently made.

Failing to look around

There are a lot of insurance providers and agencies today. They vary widely in how they estimate risk and how they determine the costs of home insurance. Some companies offer notably higher premiums than others. Don’t stop at the first insurance agency you run into. You should look around for the best deals instead. Try to find a quality yet affordable coverage that you are comfortable with.

Wrong deductible

Many people make mistake when setting the deductible. This is the amount of money that an insured pays before his/her insurance kicks in. This amount is paid toward a claim. Many insurance buyers set a wrong amount – either too high or too low. You can save a lot of money on your premiums by manipulating your deductible. As a rule of thumb, the lower the deductible, the higher the premium. But your finances could be left “askew” if the amount of deductible is too high. And if you are not able to come up with it when your home gets damaged by a disaster. You will pay more in premiums if the deductible is too low. Consult an insurance expert to hit the right balance.

As you can see, these issues are pretty complex. So even the most experienced insureds can make mistakes. Your best choice would be to consult an experienced insurance broker, though. Insurance brokers milton can help you get a quality home insurance products.

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April 27, 2012

Insurance Essentials: Home and Life Insurance

The world is an unpredictable place and even the most careful person can happen upon unforeseen events that can turn their existence upside down. That is why it is increasingly important for homeowners to purchase home insurance and for anyone with a family to look after to consider purchasing life insurance.

Taking out these two policies will provide peace of mind and more importantly, will make things so much easier to deal with in case of an unexpected, unfortunate incident.

Home insurance

Home insurance policies — which can also be known as hazard insurance or homeowners insurance — are property insurance that cover private residences. These policies typically cover the physical structure of the house as well as personal belongings inside the house, and liability. Since all of this is covered under one policy, the homeowner pays just a single premium. Home insurance and life insurance policies have some similar history.

Home insurance is a relatively new type of insurance in the United States, where the first official policy was available in 1950 — shortly after World War II and the subsequent boom in middle class home ownership. Home insurance was available in Great Britain before that year, and was available in other forms in parts of the United States, but it was not known as home insurance and did not do quite the same thing.

Life insurance

While home and life insurance both give peace of mind, life insurance has been providing that relief for far longer, as it has been available in varying forms for centuries. Life insurance is currently available in two forms: term — or temporary — insurance, and permanent insurance. There are also policies available that cover just accidental death and do not cover such things as suicide or health problems, and are typically sold for a much lower premium because of this fact.

Why choose insurance?
Any homeowner who does not get home insurance is playing a very risky game — one where the consequence for losing can be the loss of hundreds of thousands of dollars. Anyone who owns a home should have a home insurance policy. Life insurance is a bit more tricky, but it still makes sense to have some sort of policy so that in case of death, loved ones are taken care of and the cost of a funeral is covered.

Both of these policies provide something priceless: the ability to go to sleep at night with less worries and more security.

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March 13, 2012

5 Top Tips for Saving Money on Your Home Insurance

The need for home insurance is critical. The risk of losing one’s home or the myriad of valuable items inside it can be both mentally and financially catastrophic. However, at the very least the financial burden can be minimized by having proper home insurance. While you may feel the risk is minimal, an incident need only occur once to have serious consequences on the rest of your life.

Nevertheless, paying a high monthly insurance premium may be its own headache when considering the multitude of expenses already attached to your home. Thankfully, there are plenty of ways to reduce the cost of home insurance, while still having the protection you need. The following are 5 such tips for saving money on your home insurance:

1. Increase Your Deductible

Naturally, the easiest way to reduce your insurance premium is to increase the amount you are liable for. If your environment is low risk, and the items you wish to ensure are expensive, it makes sense to have a high deductible. Most home insurance deductibles begin at $500. Raising that figure to $1000 or even $3000 could result in saving about 20 to 25 percent on your rate, based on recent statistics.

This will mean you will be responsible for slightly more of the cost should a disaster occur. However, raising your deductible is an excellent way to lower the cost of monthly premiums, while still providing the security of being protected from financial ruin. The difference between $500 and $3000 may seem large, but both are paltry sums compared to the cost of your home.

2. Buy Insurance Bundles

These days, many insurance companies offer products that cover multiple industries, such as homeowners, commercial, and automotive insurance. Purchasing your insurance through the same carrier can result in a hefty discount on both premiums. Although you will lose some flexibility in terms of being able to shop around, generally if you are satisfied with a company with regard to one service, you will have little trouble utilizing their other insurance products.

3. Insure Only Your Home and Not the Land Beneath It

Often times homeowner’s do not realize that the most valuable part of their property is not the home, but the land it sits on. Moreover, they conflate the two when they apply for insurance, using the sale price of their property to calculate their premium.

This is a mistake, especially when you consider that the land will likely not be damaged in the event of a disaster. Only the cost of rebuilding the home should be factored when calculating your insurance premium, a number which is precipitously less than the sale price. Doing so should lower your premiums substantially as opposed to insuring the land and the house.

4. Discounts

There are an abundance of home insurance discounts that you may not be aware of, such as reductions for being a senior, not smoking in the home, or remaining a loyal customer. Asking your insurance agent about such packages could be useful in lowering your insurance.

5. Preventative Measures

Taking safety measures in the home will lower your overall risk, and lower risk to the insurer means better premiums. Some of the security and preventative measures you can take are adding additional smoke detectors, installing a high-end security system, installing storm shutters, deadbolt locks, and fire-retardant roofing.

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March 7, 2012

Five Tips to Reduce Home Insurance

Home insurance is a vital component of any home owner’s finances. However, many people still dismiss the benefits of such a policy, mainly due to the cost and the admin work involved when making a claim. As minor damages are usually dealt with and paid by the home owner independently to avoid the tedious process of making a claim, many assume that home insurance is unnecessary. However, this couldn’t be further away from the truth.

Buying a property is already a huge investment. Couple that with the cost involved in maintaining it and you are faced with an incredibly expensive responsibility. Home insurance is designed to financially stabilise home owners and support them in the event of theft or damage. Finding a suitable and affordable home insurance quote is easier than you think. Due to the large number of providers, prices vary significantly from company to company.

Price comparison sites are particularly popular amongst insurance seekers across the country. Although these search engines are quick and easy to use, it is not advisable to accept a deal without visiting the insurance company directly first. Minor changes within the policy may occur which may mean that the cover is not specific or relevant for the home owner.

There are, however, other ways to ensure that you get a good deal:

1. Increase Security

Installing security and safety systems in and around the home will help bring premiums down. Insurance providers recognise the measures a property owner has taken to ensure they are both safe and protected. The ‘behaviours’ will be rewarded and thus monthly payments will be lowered.

2. Join Groups

Joining community groups can seriously boost the chances of receiving cheaper home insurance. Neighbourhood Watch programs are seen by insurers as a positive behavior that needs to be rewarded.

3. Review Contents

Expensive and sentimental belongings will all need to be covered by insurance to protect them against theft or damage. However, many people fail to inform insurers of changes in circumstance that can change the amount of monthly repayments. If a piece of jewellery, electronic device or appliance is no longer used or owned then providers need to be aware, otherwise they will continue to charge for those contents.

4. Increase the Deductible

The deductible in insurance is the amount of money that is needed to be paid before a claim can be made. The general theory is that the higher the deductible the lower the monthly payments. For those who decide to pay for minor repair work with their own earnings, this is ideal. In some cases, households can save up to $200 a year.

5. Combining Policies

Contacting an existing provider of insurance is a sure fire way of improving the likelihood of a discount. Most companies will reward existing customers with a substantial reduction on their policy if they combine two or more types of insurance with them. For this reason, existing providers should be the first port of call when gathering home insurance quotes.

This is a guest post by Nicola Winters on behalf of LV, a leading provider of home insurance.

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August 27, 2011

Insuring a big new home

Home InsuranceThere’s nothing quite like a big, beautiful new home. It may be a life’s dream come true, your very own personal paradise. With the new home, however, come a few issues you must deal with. The best way of preventing a dream home from becoming a nightmare is to make sure your new palace is well protected by insurance. The best way to start looking at ways of protecting your home is with a good home and contents insurance quote. You can cover everything, easily, if you know how.

Home and contents insurance issues

Big home insurance needs to be considered systematically. It involves a range of basic areas to be covered:

  • Building insurance: A big home is also a big building. They’re expensive to build, and they’re also expensive to repair. You need to cover the value of the building on a realistic cost basis to cover damage.
  • Temporary accommodation: If your home needs repairs, you may need somewhere to live during the repair process. Good insurance policies can provide this coverage for up to 12 months.
  • Legal liability insurance: This type of insurance is an absolute must for any property owner. Any accident or other incident on your property can expose you to major legal liabilities. An absolute minimum of $10,000,000 legal liability coverage is considered by experts the sum required to provide basic cover, and preferably more than that figure.
  • Contents: Big homes can include a very large amount of contents, including a lot of expensive items like electronics, white goods and other high value domestic contents. Contents values tend to accumulate over time, and maintaining adequate coverage is important. It’s also extremely important to keep track of replacement cost values. (See also Theft, below.)
  • Fire: A common cause of property damage, fires can be extremely expensive. An accidental kitchen fire can easily cost tens of thousands of dollars. Fire insurance is an essential part of any good home and contents insurance policy.
  • Theft: Theft is one of the most basic areas to cover with any insurance policy. The fact is that theft can be one of the most expensive of all losses, and if you’ve got a lot of valuable contents, the risks increase substantially.

Please note: It’s strongly advised to make sure you keep your policy’s coverage up to date with the value of your contents.

  • Accidental damage: Broken windows, accidental damage to a garage door, you name it, the costs of repairs can be considerable. Big window areas can be extremely costly to replace, and it really is adding insult to injury to take more damage to your wallet.

Insurance for a big new home is very like business risk management. You take out insurance cover to deal with known costs and values. You can insure your wonderful new home very effectively, and make sure you’re not vulnerable to the massive financial hits legal liability, property losses and damage can cause. Keep your policy up to date, upgrade your cover when required, and you’ll never need to worry about these problems.

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