When you’re considering taking out home insurance, there are many things to think about – the value of your home against the outstanding mortgage is one of them. Overlooking the following points when looking for the best home insurance deals could prove costly, and you could see your premiums skyrocket. Always remember to seek the advice of an independent financial advisor when selecting buildings or contents insurance.
Price and Value Are Not The Same
Don’t get sucked into the false economies of home insurance – price is not the same as value. Indeed, you could save a few pounds by taking out a standard, run-of-the-mill home insurance contract, but you could end up losing hundreds of pounds due to inadequate coverage. Always insure your home for what it’s worth, never anything less, and in some cases a little bit more. However, if you still feel skeptical as to why you need to really insure your house for its worth, then consider this situation. Let’s say that due to an unfortunate incident, your house caught fire. If it does not have Intumescent Coatings (the service can be availed of from a fire protection company near you) applied to it, then there is a high chance that your house would incur a good amount of damages. In that case, you would need to get it repaired as soon as possible. Now if you do not have the right insurance policy providing adequate cover, there might be a chance that a good part of the money would be required to be paid from your pocket. This means that having the insurance policy did not really help you out in your hour of need. Hence, it is crucial to insure your house for its worth–anything less would not help you out during emergencies.
Don’t Be Blinded By Big Words
‘Special’, ‘Bespoke’ or ‘Deluxe’ insurance policies are no different from the hundreds of home insurance quotes on the market – so don’t be fooled by enticing words. ‘Specialist’ insurance doesn’t always mean costly or expensive, and you could get a great package for the price of a standard one. Comparing the market is essential when looking for home insurance, and taking the time to read something like these one sure insurance reviews can help to give you a better idea about some of the plans out there, as well as establishing which ones may suit you and your needs the best. In some cases, it only takes 15 minutes of searching online to find better deals!
Never Under Value
Your home and its possessions are two of the most valuable assets you own, so never undervalue them. If your home is worth more than average, undervaluing it can cause serious financial headaches if you were ever to claim on your insurance policy. Yes, your premiums will be a lot lower if you undervalue, but if you needed to claim due to an unforeseen event, then the payout won’t be anywhere near as much as you need to make repairs!
Always get two opinions on the value of your home – one from your potential or current insurer, and the other from an independent advisor. This way, there’s no chance of your home being undervalued, and you can’t lose out on your home insurance if you were ever to claim.
Insurance Is Rarely All-Inclusive
If there’s one thing you must remember, never be ignorant with your insurance policy, because there’s a good chance that one or two eventualities won’t be covered. A standard policy is likely to include just the basics and a cap of how much you can claim. Don’t think that just because you’re home is insured, it’s insured from all types of damage.
In many cases, water damage is an optional extra that needs to be taken out separately from your home insurance, if you don’t have this then it is unlikely your insurance company will send for Professional Mold Removal services and this is something you may have to do yourself as a result. It may only cost a few extra pounds a month to cater your policy to cover all damages, so always make sure you know what you’re protected against.
Finally, don’t forget to do a bit of digging into your insurance company. If they have a track record of not paying out maximum value on their customers’ policies, then make sure you steer well clear.