Selecting an insurance company isn’t exactly one of the most exciting things in life, but it’s a necessary part. Without home insurance, you are gambling with your hard-earned money and with your future. Even if you don’t quite have the money for home insurance at this time or don’t need it currently, it never hurts to learn more so when the time comes, you’ll be prepared.
When You Should Begin Your Search and What to Know Beforehand
Any time you are in the process of purchasing a home, it is important that you take a look at your future residence. How old is the house? How big is it? Not only does the age of a place affect insurance rates but so does its location. For example, a home with a brand new electrical system is going to generally be cheaper to insure than one that has an aged system in place. This is because the home is more of a risk to insure. Keep in mind, there are a large number of factors that insurance agents take into consideration when creating your policy, including but not limited to: proximity to police or fire stations and likelihood of natural disasters (homes in tornado or flood zones are going to be pricier to insure).
Look Closely at What You Have
Insuring your home is one thing, but making sure that coverage extends to those within your home (liability) and your personal belongings is also very essential. If you have an extensive collection of: clothing, jewelry, electronics or anything else that is worth a pretty penny, it is important that you let your insurance company know and verify that those items, if stolen or damaged, would be replaced or paid for.
Creating and keeping an up-to-date list of the items you have inside your home, along with pictures of them never hurts. In the event of accidental damage or loss, this evidence will help you get back what you worked hard to earn.
Track Down Discounts
There are many discounts that insurance companies offer, and without hunting them down, you may not realize just how much you could be saving. For example, individuals who have security systems installed in their homes are typically going to pay much less than their counterparts without alarms do. Having fire extinguishers is also a great way to save some money each month on home insurance.
It’s Not Just About Being Covered
While it is better to have some sort of insurance versus having no coverage at all, choosing a policy that covers all aspects of your unique life is crucial. The chances of someone hurting themselves on your property may be slight, but by taking that chance, you are risking an injury that you may need to pay for out of pocket.
Choosing a Company You Can Trust
Trusting businesses these days can seem next to impossible but by doing your homework, you should be fine. Check each company you are interested in with the BBB and look for customer reports and reviews. This will help you select the right insurance for you.
The author of this post is George Smith-Davies of contentsinsurance.org. He is a renowned financial adviser, a passionate golfer and a caring husband. He highlights the importance of having savings and insurances in his articles.