Choosing the right home insurance option can be difficult, luckily, we have these easy tips to help you find the most affordable cover.
1. Accurate Content Evaluations
Create a full and comprehensive list of all the contents in your home so you can create an accurate estimation of the value of your possessions. Make sure you don’t leave anything out to save a few bucks because if something were to happen, you would be underinsured and you would have to pay to replace the items.
2. Know Your Policy’s Limitations
All policies available will have a limit as to how much the insurance company would be willing to pay out per asset, you need to know what this amount is. Make sure you read the fine print on the policy before you sign. Your policy will probably not cover every single asset for every kind of loss situation but you must know what is included. Items excluded from a claim according to your policy often comprise of antiques, damage from storms, and a lack of maintenance to your home.
3. Avoid Discount Insurers
As tempting as it may be, choosing the cheapest insurer that offers “discounts” will cost you in the long run. Be sure to avoid insurers that offer discounts as the low-cost policies have some nasty and expensive surprises in the fine print. You either need to give up a certain level of coverage, customer service, or you actually pay back the “discount” a few months later with higher premiums.
4. Insure Collectables Separately
Most basic insurance policies will not cover antiques or collectables. You can either pay an extra premium with your basic policy or you may have to take out a completely different policy. This will depend entirely on your insurance provider. Take note, it is important for you to safeguard any appraisal certificates of your collectables, as you would need to prove their worth in case of loss.
5. Up Your Excess
To save on your monthly premium, ask your insurance broker to increase your excess. This means that the required amount you need to pay for the cost of filing a claim with your insurance company, termed excess, would be higher than the normal rate. If you intend to do this, make sure you increase your excess before you start paying your monthly premiums.
6. Always Compare
Don’t be fooled by the bold offers of some insurance companies, always take a closer look at the policy details such as limitations, excess, and overall price. To compare a variety of good quality home insurance providers, simply go to http://www.compareguru.co.za/insurance/home-insurance
7. Replacement-Cost Coverage vs. Actual Cash-Value Coverage
Check your house insurance policy whether you are covered for ‘replacement-cost ‘or ‘actual cash-value’. Replacement-cost coverage is less popular than the latter because it pays to replace the damaged items with material or items of “like kind and quality” at current prices. So if your 2010 Apple iPod goes for a swim in the washing machine, your insurance company will replace it with the latest Apple iPod available. In contrast to this, actual cash-value options will replace your lost or damaged items at the item’s depreciation value. Replacement-cost coverage options would normally cost a bit more and some companies don’t offer this option anymore.
8. Claiming Your Appraised Value of Your Loss
Be aware that when your appraisal value for your property was made, that is the value that will be used when you claim. Sometimes insurance companies refuse to cover house insurance claims if the property has decreased in value since your previous appraisal due to depreciation or poor maintenance. If your insurance company is filing your claim for damages to your belongings or house, you will get the actual-cash coverage based on the value at the time of the loss.
9. Be Aware of Value Limits on Belongings
Some insurers won’t pay-out for the full replacement of your claim because they often have a limit on the value of certain items. If they do replace your lost or damaged belonging, they base it on the average person’s losses. You can speak to your insurance company about increasing these limits to accommodate your specific needs.
10. Renewing or Losing Your Policy
Your insurance company may cancel your insurance policy or deny a renewal if your property’s value doesn’t meet your insurance company’s underwriting standards. Alternatively, you may not be offered a renewal of your contract if you have filed more claims than the average person. The average person makes one to two claims every ten years. Your insurance company will notify you thirty days before the end of your policy’s duration with either an offer of renewal or ‘non-renewal’. If you insurance company cancels your policy, it may be due to unpaid premiums. Your insurance company will always notify you ten days in advance if they are cancelling your policy. They may use a late billing notice to inform you that your policy has been cancelled or is pending cancellation.