You can never completely safeguard your property against unforeseeable events, such as home intrusion and car theft, home accidents and natural disasters. However, what you can do is apply for a home insurance policy that can cover you and your property in these cases. However, the main problem is the fact that a great number of people don’t actually believe that this can happen to them, so they postpone or never apply for insurance. Nonetheless, no matter how unlikely certain events might seem, it’s always better to be safe than sorry. Thus, you should take some time to learn about property insurance in order to find a policy that meets your needs.
1. You need to understand the claims process
The advantage of being insured in the case of different events is that the home insurance company covers your losses or replaces your belongings. However, there are certain differences when it comes to claims payment and replacement. For instance, they might pay you the entire claim upfront or just a fraction. It’s important that you understand how the claims process actually works with the chosen company and see whether it meets your needs.
2. You should create your home inventory
Creating your home inventory is an essential step when applying for an insurance policy. If you don’t have an appropriate record of your personal belongings, an insurance company may deny your claims. Thus, you should list your belongings, along with their payed or appraised value and then create a virtual copy, safely stored online. You should also create a video record of your home contents, rooms, closets and cabinets, which can be of the utmost importance in the case of natural disasters.
3. You should research different home insurance policies
When it comes to homeowners’ insurance, there are different policies that you can apply for. For instance, you can go with an actual cash value policy that will cover the actual worth of your house, but not the cost of rebuilding it. Another possible option is the replacement cost coverage that actually covers the costs of repairing and rebuilding your home. This is the preferred choice of many homeowners because it covers the expenses even if they exceed the actual value of your home. Other options include a named peril policy, which covers solely the listed items, and all risk policy, which covers any home damage or loss.
4. Insuring your car is also important
Applying for a car insurance policy is another important consideration that you shouldn’t skip. Since car insurance is typically sold separately from home insurance, this will require you to do some additional research and find the best policy there is. For instance, question based car insurance will cover your car in a range of different situations, including natural disasters, theft, fires, accidents and even damage to someone else’s property. Since cars are one of the everyday essentials that make our lives easier, insuring them can be an invaluable protection.
5. You can find insurance discounts
Exploring your insurance options will provide you with certain unexpected benefits like discounts. Certain insurance companies offer a contents discount if you apply for both contents and car insurance with them. You can also find different car insurance discounts. This will allow you to save on your insurance while providing you with quite an extensive policy.
6. There might be limitations to your coverage
When choosing a certain policy, you should be aware of common coverage exclusions. For instance, rarely do insurance policies cover the movement of the earth, which includes sinkholes, mud flow and earthquakes. Some policies may include a “sudden and accidental” prerequisite for coverage. This means that if you had a leaky pipe, for example, that had been damaging your property for months, an insurance company wouldn’t cover the repair. Furthermore, most of the standard home insurance policies don’t cover natural disasters, such as floods and earthquakes, even though they are sudden and accidental. Therefore, you should consider applying for a natural disaster insurance policy separately because natural disasters do happen.
7. You should be aware of deadlines
Should you need to make an insurance claim for a major damage, you should do it in a timely manner. Many policies come with a 14-day deadline for filing a claim and if you miss it, you’ll need to pay for the replacement and damage yourself. Thus, it’s essential that you ask whether your policy comes with a certain deadline when applying for it.
Home and property insurance will help you safeguard your home against unforeseeable events. However, since there are different policies with coverage limitations, you should take time to research your options and find a policy that meets your needs.
Lastly, be aware that Insurance options and regulations often vary widely between countries and regions. If you need a referral to a great insurance broker in Winnipeg, contact me: