When you own a home, you know you have to protect it and everything in it from a horde of negatives. That makes home owner’s insurance an absolute necessity and not a luxury, as some people think. Here’s what you should look for in a home insurance plan.
1. Look For Additional Policies
Many home insurers offer auto insurance and mobile insurance policies as well. When you buy multiple policies from the same insurer, you can bring your premium down by 5 to 15 percent.
2. Do Some Self-insuring
Some insurers offer discounts of 5 or more percent if you install a burglar alarm, dead bolts, and smoke detectors and so on. Throw in good fire and burglar alarm and you can cut up to 20% of your premium.
3. Look For Other Discounts
If you’re a stay-at-home senior, you’re more likely to prevent burglaries and fires from taking place; that earns you a good discount. Check for other discounts that are offered for special groups, if you belong to any.
4. Replacement Value
Look for “guaranteed replacement value” in your insurance; this aspect guarantees that in the event of a disaster, your home will be rebuilt irrespective of the cost, even if the prices go up.
Check if your insurance plan allows for additional endorsements. For example, you might want to get your jewelry covered under the same plan, or antiques, collectibles and so on.
6. Liability Coverage
Check if your insurance plan covers accidental liability; for example, if your neighbor slips on your wet kitchen floor and sues you for medical expenses, your home insurance should take care of it. Home insurers like Aviva provides up to £2m protection if someone gets injured or their property is damaged at ensured building and you are legally responsible to pay damages. This is important if you are both the occupier and owner of property.
7. Actual Vs. Replacement
Make sure your insurance covers replacement cost of items, not the actual cost. The actual cost is the present value of that item on the market, while the replacement cost is what it’ll cost you to buy the item brand new.
You want the highest deductible you can afford. Secure your home thoroughly against all forms of disasters; pay a high deductible for repairs and enjoy a low premium and continued benefits.
9. Replacement Claims
If the insurer reimburses replacement costs rather than replacing the items, you want to know how much time you have to supply receipts. You’ll benefit from more time in this case, to plan your replacement strategy and save some money.
Standard coverage only protects you from fallen trees, burglaries and fire. You may have to take separate insurance for bigger disasters, especially if you live in a high-risk area. Check if your current insurer will extend the coverage for additional premium.