Whether you are a homeowner or a renter, buying home insurance needs to be a priority over other expenses that you might consider more important—such as remodelling your kitchen or getting a new paint job. However, many people often tend to be more willing to spend on improving the aesthetics of their home than securing it against unfortunate events.
Home insurance is equally important if you live in a rented accommodation. While the owner may have insured the property, the contents of the home must also be insured by the renting party to cover loss due to burglary, fire, and so forth.
If you’re looking to buy home insurance, here are 3 key questions you’ll want answered before making a decision.
Why should I take home insurance?
Home insurance is an important means to protect your home and its contents against events such as repair, replacement, fire, theft, floods, earthquake, and so on. By purchasing home insurance, homeowners and renters can be assured that their home and personal property have an added security of insurance coverage in case of a mishap. Additionally, home insurance offers protection against any liability arising from injury to third party or damage to the property.
What factors determine the premium of a home insurance policy?
Before you purchase home insurance, it is important to understand why one policy costs more than another. Generally, the factors that play a key role in determining the premium rate are: age of the property (an old house will likely have higher premium); type of construction (brick or wood or other); level of coverage (the higher the inclusions you buy, the greater the premium); fire protection (homes closer to the fire department may have lower premiums); any deductibles and discounts.
Remember that cheap is not necessarily the best when it comes to insurance coverage, as low premiums generally mean lower coverage.
What are deductibles?
A deductible is the amount you agree to pay in the event of loss of property from any of the events stated in the insurance agreement. For instance, if a fire caused a loss of $2,500 and you had chosen a deductible of $1,000, your home insurance will cover only the remaining $1,500.
A policy with a high deductible will have a lower premium rate, and vice versa. Experts recommend that you carefully consider the amount you’ll be able to pay in case of loss before opting for a policy only because it offers the lowest premium.
If you’re new to the world of home insurance, or if you’ve not had a great experience buying home insurance on your own, consult an independent insurance advisor, such as the home insurance experts at georgiasfinestins.com, who have the resources and the know-how to get you competent quotes from multiple insurance companies. By working with an independent agency you can be sure that the options offered to you will be based on your need and your budget; at the same time, you’ll have access to professional help to dissect and understand each insurance offer.