How many people are aware of the importance of home insurance and what are the consequences if you don’t own one? Well, a majority of us hardly mention anything to do with home insurance that apparently rates as one of the biggest investment that anyone can make. And since no one has an idea of when a calamity, the likes of floods, earthquakes and fire can strike, it is important to put into consideration house insurance.
Things to consider before buying home insurance
Affordability against what is covered:
Home covers are of different preferences the common ones being basic and comprehensive covers. The former takes care of such incidents like fire floods and allied perils while the latter is all about earthquake damage and theft among others. However, there is an option of a simpler one that only covers the house and a more comprehensive one that covers all the belongings inside the house. Other additional covers include rent cover that is responsible for any damage in the house and probably a need arises for moving to another house till the fixation of the problem takes place.
The home cover also has an option of insuring belongings in a house that one is staying on rental and not ownership basis against natural calamity.
Terms and conditions:
Different insurance covers have different terms and conditions that must be respected. For example; an insurer may state that the cover is only taking care of the building value without making any considerations on the ground around. Other insurers will say, in the case of jewellery, it is only under the cover when it is in home safes or locked steel cupboards.
The tricky part about home insurance is that in case one is living in a flat; an earthquake cover is only applicable if the building society fully opts for it.
Deciding on the optimum amount
Well, it is good to understand that the optimum amount of insurance is neither too little nor too much. Premiums are fixed, but the amount of cover received in the case of an eventuality is different based on the actual living area.
Nevertheless, it is prudent enough to take a long term house cover that is cheaper. Automation of premium payments also means that amity of mind for a longer time frame.