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The purpose of home insurance is to give you peace of mind and to bring you back to the same financial situation before any accident happened so it is essential that we understand how it works. Home insurance is your protection that lightens the burden of expenses incurred when theft, losses or damage to your home and belongings happen. It is not mandatory but comes highly preferred. House repairs are costly, what with the rising prices of building materials and all. It is a practical way of getting coverage to rebuild your home especially in case of an accident or natural disaster. Home insurance is under property insurance and it has two categories: building insurance and contents cover. Both can be taken together or it can also be bought individually, should you feel you only need contents coverage. A home insurance is the easiest way to safeguard your life’s most cherished possession.
Taking care of your property doesn’t start and end with acquiring property insurance. You should always make a property insurance inventory list. That way, if an unfortunate event occurs, you and your insurance company will have an accurate and detailed inventory of your possessions. This will also help the insurance company to give you a more accurate replacement value for your personal property. The first step is to list down everything you own, starting from the most valuable such as jewelry, furniture, etc. Take pictures and make a video of your inventory as well. This will help to validate your claim. It’s easier to claim that you have a 2-karat diamond necklace if you have a video and photo of it. Next, make an estimate of how much these items cost. Keep it real, and don’t forget that some items can appreciate in value while some items depreciate. It would also help if you keep the sales receipts of the items you’ve bought. Finally, store your inventory list, along with the photos and videos, in a safe place, away from your home. You can also give a copy to your insurance agent for safe-keeping.
Paul and Tom are good friends. Paul was surprised upon seeing that he has a bigger premium compared to Tom. Why did that happen? It’s simply because Paul is a smoker.
Usually, a household that has smokers in it will get higher premiums. It is because there is a big risk of fire accidents. In United states alone, over 20,000 homes are accidentally burnt because of irresponsible smoking. The homes with no smoking individuals tend to get better rates.
Are you planning to quit smoking? You can ask your insurance company for a review that you’ve decided to quit. If the insurer still rejects your appeal for a smaller premium, it is about time that you look for a more open-minded insurance company.
We have a good list of high quality home insurance deals out there that are cheaper compared to the other quotes. A person who patiently takes time to search for good quotes usually gets the best deals in the market.
I am not sure if you are aware of this, but did you know that you can avail discounts on your premiums? Sit down with your agent and ask him/her about the necessary information that you might need to know. Ask them about the list of discounts that the insurance company provides and how you can qualify in such opportunity. Some companies don’t really advertise them, but this doesn’t mean that they don’t offer such discounts.
Did you know that there is actually a chance that one can spend less money for home insurance? All you have to do is review your policy when there are big changes in your dear home. You can do this once annually. It is about time that you evaluate if the expensive fur coat that your relative gave you is as expensive as the original price.
You can also lessen your coverage with the same percentage. This will happen if the coverage decreased in value. It will be a big help to you in terms of saving and at the same time maintaining your coverage.
In Europe, the Association of British Insurers (ABI) gave a warning about the alarming danger caused by global warming. If nothing is to be done about this environmental issue, there is a tendency that the present value of the claims can be doubled or tripled by the middle part of the century. ABI desires that the climate change must be considered when it comes to designing the accounts of flood defenses and to check the regulations implemented in buildings so that it will be a bit more opposed to the bad weather. They also reminded that motor insurance must also be considered in this issue.
by: Christine Zafra
Home insurance companies as private firms can do something in building a stronger nation. How? They can help government institutions dealing with housing projects/construction projects. They can offer lower policies for people working in the government that will best fit their wage/salary. In this case, the selective marketing of insurances will expand providing more services to people who are not that rich. People who cannot afford large amounts of policy agreements will now have access of ensuring their homes. With this, people will have security and investments at the same time for a lower cost.
They are being served by the government, maybe it is about time that they also get the feeling of being served by private firms, specifically concerning their personal properties.
Photo taken from http://listencarefully.net
by: Christine Zafra
Do you find fireplaces romantic? Oh yes, imagine your hubby/wife with you on a cold Christmas eve, drinking wine in front of the fireplace. Isn’t that sweet?
Though fireplaces give you benefits during cold seasons (aside from the fact that it adds to the ambiance of your home), insurance companies might raise their eyebrows and question you about it. Before you can install a fireplace (or any other wood burning appliance), you need to get a permit. You can’t just get a hammer and chip off a part of your house so that you’ll have a fireplace this coming Christmas—there’s a building code for that. If your wood burning appliance does not comply with the code, chances are, you can say goodbye to your insurance too (or if you’re lucky enough, just get your house a little devalued).
Photo taken from http://www.germes-online.com
by: Christine Zafra
Old homes are fortunes. Those old Victorian style houses you see around plush villages that date back around 1800’s are worth millions. But, if you think these houses can get as much in insurance companies, you’re wrong.
I’m not saying all old houses are valued little by insurance companies, but chances are, if these houses have the old “knob and tube” wiring system, then yes, insurance companies may lessen the value of your home.
The knob and tube is an open wire type of wiring. In addition to that, old homes do not have much electrical boxes installed in their homes. What most owners do is they attach new electrical boxes to the old ones. This is hazardous according to insurance companies since this can cause overheating, short-circuit and on extreme cases, fire.
Photo taken from http://images.oldhouseweb.com
by: Christine Zafra
Aluminum wiring was widely utilized in some homes about four decades ago. However, some problems have been associated with these handy, ready made electrical insulators such as, overheating and failure of some of the electrical boxes; and these problems are covered by home insurances. Some signs of faulty aluminum wirings include the discoloring of the surroundings of the electrical boxes, the flickering of some bulbs or perhaps the smell of burning electric. These aluminum rods are said to be compatible to 220 volt circuits but not to the most widely used 110 volt circuits in the United States.
Some insurance companies, upon inspection of your home and upon discovery of these wires, can devalue your homes because of these.
Photo taken from http://www.copper-aluminum-wire.com
