Holiday Home Times

Homeowner’s Insurance – Reading the Fine Print, Tips before you Purchase

Homeowners insuranceUsually many homeowners fail benefit to foresee the benefits of a home insurance as waste of money. While others do understand its importance, they take one without even taking a look at the fine-print. On many occasions owners came home disappointed, when they realized that despite paying the premiums regularly, when they actually went to claim damage, it was not included in the policy.

In this article we will discuss, what are the area that needs to be covered in the home owner’s insurance and what are the areas that are not covered. But before that the answer to ‘whether a home owner’s insurance is worth taking?’ Despite what cynics may feel taking a home insurance is better than the trouble you might face if any disaster strikes. The Home Insurance Policy saves the owner from facing dire consequences caused by natural calamities, thefts or other issues. Thus, the owners are assured of complete peace of mind as they do not have to keep worrying about the hard earned money they have invested in the house and the home furnishing items.

TAKING A HOME OWNER’S INSURANCE:

The home insurance rates differ from company to company based on the policies you opt for. Home insurance covers all kinds of risks, from damages arising from terrorist attacks to breakdowns of water tanks.

WHAT DOES THE HOME INSURANCE COVER:

General home insurance policies cover either the house or the belongings of the house. However, elaborate Insurance Policies for Home protects both the structure of the home as well the things inside it from manmade or natural calamities. Some of the circumstances against which the Insurance Policies provide coverage include:

  • Fire
  • Lightning
  • Any explosion
  • Storm
  • Cyclone
  • Flood
  • Riot
  • Earthquake
  • Pipe bursting
  • Leakage
  • Attempted Theft
  • Burglary.

Today many insurance companies also providing protection against terrorist attacks too.

WHAT ELSE CAN BE INSURED IN A HOME INSURANCE POLICY:

Apart from the property, the policy covers all the items inside the house. However some policies do not. So when taking a home insurance policy don’t just assume, instead either ask the agent selling the policy or else read the policy coverage pointers thoroughly to avoid any discrepancies later.

I usually recommend taking an home insurance that also insures the items inside the property. For owners who are insuring his second home, this is a must, because after signing the policy, you don’t have to fret about the your valuable painting, costly furniture, or electronic items like washing machines, refrigerators, televisions, computers, DVD Players, etc.

A COUPLE OF TIPS BEFORE YOU TAKE A HOME INSURANCE:
  • Two policies can promise the same amount of coverage, but they can be vastly differ when it comes to claiming a loss. Have the agent explain exactly how claims are handled.
  • It is advisable that you note down all the things of your home you want to insure.
  • If you own a condo or an apartment make sure that the condo board or homeowners association has a policy that covers the common areas, and get a copy.
  • Install a security system and smoke alarms because this will help lower the homeowner’s annual premiums, perhaps by 5% or more.

CONCLUSION:

It goes without saying that for a homeowner the property is a big investment. Home insurance protects this investment as well as the people living in it along with the household possessions. So securing your paradise with a Home insurance is a must!