The danger of unforeseeable events is always there – you can never be 100% sure that your home is completely protected from unfortunate situations such as accidents, natural disasters and theft. Although you can’t guarantee complete home safety, you can apply for an insurance policy that will cover you financially in the case of the mentioned events and different liabilities. However, one of the main problems with getting insurance is the “it won’t happen to me” factor. It is impervious that you surpass this sort of mentality. No matter how certain you are that this won’t happen to you, applying for an insurance policy will give you your peace of mind.
1. Understanding the claims process
Being insured is extremely important and very useful, but not all insurance deals promise the same thing. Depending on the insurance company and the coverage you’ve opted for, the claims process may vary in terms of payment and replacement. This means that you may be paid the entire claim upfront, or a fraction you’ve previously settled on. This is one of the key factors to consider when choosing an insurance policy with a particular company.
2. Researching different homeowner policies
As you probably know, there are many different policies to apply for, as a homeowner. For example, an actual cash value policy will cover the actual worth of your house, but this this policy doesn’t cover the rebuilding costs. On the other hand, the replacement cost coverage covers the cost of both repairing and rebuilding your home. Homeowners typically prefer the latter option because the expenses are covered even if they happen to exceed the total value of your home.
3. Creating a home inventory
The first step when applying for insurance is coming up with a home inventory. Essentially, without a detailed list of your personal belongings, your insurance company may well deny your claims. In order to avoid this, it’s advisable that you list your current belongings with their paid/appraised value, create a virtual copy, back it up and store it safely online. A video record of your home contents, areas, rooms, cabinets, closets, electronic equipment may also come in handy in the case of natural disasters.
4. Insuring your vehicle(s)
People tend to consider car and home insurance separately since they are sold under separate policies. Nonetheless, you should do the necessary research and find the best car insurance policy out there. Regardless of whether you’re a house owner, whether your car is parked in your garage, or whether you live in an apartment and you stash your vehicle in a public garage, you will need car insurance, in addition to your home insurance, to make sure that your valuables are completely covered.
5. Understanding coverage limitations
Coverage exclusions are often overlooked, which means that you may need to pay even more attention to them than you should on what coverage includes. For example, there are few policies that cover earth movement events, like mud flow, earthquakes, sinkholes, etc. The vast majority of standard policies don’t cover other natural disasters either, such as floods, volcano eruptions, tornados, hurricanes, etc. Luckily, applying for a natural disaster insurance policy will cover you here. On the other hand, some policies have a “sudden and accidental” prerequisite for coverage, meaning that they won’t cover the repair costs if you happen to have a leaky pipe that has been damaging your property for an extended period of time.
6. Finding insurance discounts
Speeding up your insurance application and going for the first insurance provider that comes your way is definitely not a good idea. Doing thorough research can provide you with a lot of benefits, such as discounts. This goes for car insurance, so make sure to take your time before you sign the contract.
7. Getting in touch with the deadlines
In the case of any damage or disaster, you should be aware that there are certain deadlines for claiming insurance, past which your claim will be deemed void. Most policies have a two-week deadline for claim filing, and if you make your claim past this deadline, you won’t be covered. When choosing an insurance policy, it is vital that you ask about the deadlines and that you are aware of them at all times.
Applying for property and home insurance will cover and protect your most valuable belongings. Thus, you should take your time while researching your options because there are many different policies out there and a variety of factors that play a crucial role in finding the right one for you.
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Writer: Lana Hawkins
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