When one thinks of thinks of buying an insurance cover for the owner of home, various factors need to be kept in mind. All these factors have a strong influence on the cost to be that one shells out for the insurance of his home.
The Condition of the Home
Insurance covers the inspection of things like the situation of the roof of the house, porch and the electric wiring of the house for any kind of seepage or crack and also for the variety of the material used. This is an important aspect since these are responsible for the deterioration of ones home when premium amount is settled. As we are aware of the fact that new homes are in a good situation to live in as compared to the old ones. So, insurance provides a discount for the same.
The Construction of the Home
There is a need for the inspection of the houses as they are more prone against the damages in relation to others. Insurance cover for a wooden house is more expensive as compared to the insurance for a home made of bricks for the reason that wooden houses are more prone to risks than the bricks one.
If any person has various safety devices such as robbers alarm system, windowpane locks, detectors of the smoke etc, then one is allowed for recurring discount on the insurance policy. Major
If No One smokes in the Home
As we know that smoke results in increase in the risk of fire, one gets a discount if there is no one addicted to the habit of smoking in the house.
Is the Home in a High Risk Area?
Insurance policies particularly standard ones do not cover damages which are caused the floods or the earthquakes. As against them various other policies are there but are a bit expensive. If at all one is covered with the unforeseen events under any plan of the government, then one should shop for coverage by a private insurer as it may prove to be less expensive.
Amount and Type of house Insurance Required
Apart from the coverage provided for loss or any damage under the general home owner’s insurance policy, one may be provided with the additional benefit on certain packages. Benefits like personal liability coverage in case someone is injured on your theft and property insurance. Details should be read thoroughly as there can be appreciable difference between packages that may look similar. You have to ensure to get what is required.
Deductible as required
Before the benefits which you would start getting from the insurance company, you have to pay an initial amount called as deductible. If you pay high deductible, you will have to pay low home insurance premium. Thus saving is directly proportional to the deductible raised.
Loyalty towards the Company
If one has planned to purchase more than a single category of insurance from the same company, subsequently one would get the benefit lesser charges. Lower rates can also be obtained if the individual may continue to settle with the same company for a long period.
Under the group insurance policies, you can get a higher discount as compared to any other plans.
Following are points that should be kept in mind so as to ensure a safe policy for the owner of the home.
- Deductible should be raised.
- Rebuilding cost should not be perplexed with what has already been paid for our house.
- Buy as much policies as one can from the insurer.
- One should wholeheartedly try to improve security of ones owns home.
- One should try to make his home resistant against any disaster.
- One should look for other deductions if possible which would prove to be profitable.
- We should try to continue with the on going insurance plan for as much time as possible.
- A good record of credit worthiness must be maintained.
- One should try to have a look on the policy and value their belongings so as to appraise it.
- In case one already has a plan relating to government, private sector insurance should be looked upon.
- One should keep on with the Stay with one insurer only. There is an extra discount if a person decides to be a long term policy holder by keeping coverage for many years with the company. The premium may be decreased by 5 percent or 10 percent if you stay with the insurer for three to five years and six years respectively but still a comparison with other policies should be made from time to time.
- Limit of the policy as well as the possession value should be minimum for once in a year. One always wishes that his policy takes care of the maximum purchases or additions to his home at the same time he will not wish to invest on the unnecessary coverage. If your coat which is five years old is no more the amount you should have invested, you’ll wish to decrease or finish your floater (supplementary insurance for things whose entire value is not undertaken by standard home owners. Policies such as invaluable work of art, high end computers, and expensive jewelry) and overcome the difference.
- In a government plan private insurers can be looked upon If you stay in high danger area, say one is susceptible to floods, storms, drought fire or other calamity an have been purchasing your home owners in a government plans, you should not investigate with the representatives of the company knowing the names of the companies of your state department willing to involve in your business.