Protection of your assets is one of the greatest step towards protecting the property in your house. However, finding the best home and contents insurance can be a task since there are many home and contents insurance that promise to meet your needs. Most of the basic level building insurance will cover the replacement costs of the mortar and bricks but due to the differences are taking place some will cover contents of the house.
There are also different home and contents insurance policies that are available. If you are not careful, you will buy too much cover and pay more than what you should pay. If you take a little cover, your insurance provider will avoid giving you the payout when you need it. So which are some of the strategies you can use to make sure you’ve got the best home and contents insurance? Here are some of the strategies you can use to make sure you get the best value home and contents insurance.
Make Sure You have the Right Estimates of Your Items
One of the mistakes that people make when they are taking a home and contents insurance is that they underestimate or overestimate the contents in their house. When taking a home contents insurance policy, always make sure you get the exact cost of rebuilding your house in case it becomes damaged. The cost of the materials that you incur while building the house is key. If you bought the house, get the exact cost of the materials used.
The contents that are in the house should also be taken into account and get the exact cost of all the contents in your house.
Know the Types of Cover
There are two types of home and contents insurance. Both of these policies have an effect on the premium that you will pay for premium. There is new for old where the insurer will pay you what is required to replace the items in your house other than the clothes. Wear and tear costs are not usually included.
There is also indemnity cover, where you will be paid the current value of your properties. For example, if your TV costs $300 and you need to replace with one that costs $1000, you will receive $300. The premium offered for such policies is cheaper and tricky at the same time
Other Insurance Options Include;
- Legal cover for the court associated with the court
- Accidental damage policy to cover small accidents such as spills on your carpet
- Personal possessions which covers personal items such as laptop, wallet or your phone
Beware of What is Exactly Covered by the Home and Contents insurance Policy
Of course, it can look as simple as it sounds but most people rarely know what is covered in their home and contents insurance policy. A survey that was carried out revealed that about 14% of the people who took a home and contents insurance were not aware of the personal belongings that were covered by the policy.
The best thing to carry out is seeking to understand all items that are covered by the policy. There are different ways to understand a home and contents insurance policy. The first step towards understanding contents covered by the policy is by calling the insurance provider and asking them about the items covered by the policy.
You might be surprised that there are items that you thought have been covered while they have not been covered.
Inquire from Insurance Brokers
Most people have a negative view towards the home and contents insurance brokers. Some would prefer going direct to the bank, insurance providers or building societies. However, the thing that they will do is to encourage you to take a home and contents insurance that will be tied to the mortgage of the house.
In most cases, you might end up paying more than if you had used a broker. Take your time to carry out research and use an insurance broker is possible to avoid incurring extra costs for your insurance policy. They have knowledge in the industry and inquire from them so that you can learn on the best value home and contents insurance cover.
Update the Insurer about Changes in the Contents Policy
Always make sure you update your insurer about changes in the contents of your house. If you buy new items in your house such as jewelry or furniture that will increase the value of the contents, let the insurer know.
There are also other insurance policies that will increase year after year simply on the basis that the rebuilding costs are also increasing. Make sure you keep an eye on the increases and ask the provider about the details of the policy.
Avoid Under insuring Your Items
You should always make sure that you have taken enough cover that will cover all your possessions. There are some insurers who will reduce the amount of the payout even if it happened that you covered one or two items.
Let us take you have the following scenario;
- You have over $5000 and you cover them for $2500
- Someone breaks into your house and steals two laptops that are worth $1250
- You make a claim to your insurer
- Since you did not take enough insurance cover, you only took half of what it should actually be. You will only be paid half of the of the total claim and you will receive $625 only.
To avoid being in shock, always make sure that you have taken an insurance cover that will cover all the properties in your house.
When you are looking for the best home and contents insurance quote, always make sure you carry out a comparison of the insurance policies available. You can use the above techniques to make sure that you have got a cheap home and contents insurance policy that will meet all your needs. Most people fail to take up an appropriate home and contents insurance policy for their properties and end up paying so much or failing to receive a claim that will cover all the needs.