For some homeowners, taking out a comprehensive home insurance policy is the first thing which they do once their name appears on the title of a property. For the majority of homeowners, however, the instinct just isn’t there, leaving them exposed to serious financial problems should anything happen to their home.
If the category you most identify with is, unfortunately, the one where you are left in a bad financial position, below are some great reasons to help you learn more about home insurance.
What Does It Cover?
There are a few different types of home insurance policies which you can take out, with the pain policies including damage caused by:
- Severe Weather Conditions
- Home Assistance
While it can seem simple to assume that a policy which includes severe weather condition insurance will provide you financial aid in the event of a storm, it’s important to discuss with the insurer the level of the storm which is considered to be severe.
You may have noticed that the above list doesn’t include your personal items or anything inside the structure of your property. This is not by accident. The reason is that this is considered as an extra charged by insurers. This means that you will need to speak with your provider about additional coverage to replace items in your home, such as electronics or even the clothes you purchased from the Groupon Coupons page for LOFT. There are two main types of contents insurance you can take. Let’s look at them in more detail below.
New for Old
This is exactly as it sounds. While you may take it as a given, replacing old items with brand new ones is not the standard procedure (more on this in the next point). For this reason, it’s important to discuss this options with your insurer before taking out your policy. For example, if you recently bought an expensive top of the line TV and your home is broken into in ten years time, instead of replacing your TV with an equivalent, you will be given a new TV.
Lump Sum Payment
This is the most common and standard option for home and contents insurance. With this type of policy, all of your items will be valued at the time the policy is taken out and a total amount is agreed upon by you and your insurance company. IN the event that something an insurable incident occurs at your home, instead of receiving individually replaced items, you will simply receive a check for the agreed upon amount.
This can often work in your favor if many of your items are old and you are able to agree on a reasonably high price for each of them.
Home insurance isn’t an obligatory product and you aren’t required to take it out along with singing the title of your new home. However, while you may find the ongoing monthly payments to be cumbersome, it is important to know and consider the benefits which home insurance can provide to you and your financial situation.