Home Insurance Policy

If you have never had home insurance coverage before then you may feel like you need someone to explain it to you. After all, not every policy is the same. Some are very different but no prior experience in this particular field may result in all the information that specialists will throw at you going straight over your head. It can be difficult to make sense of all of the jargon associated with a home owners insurance policy, but if you know the basic features to look for in a policy then you are equipped to choose the policy that is best for you.

There are several features that you need to look for in the home insurance coverage that is offered by various companies and the list below notes several of them. This is by no means an exhaustive list but should give you an idea to get you started:

1. Exclusions Exclusions are put in place within your home insurance coverage to limit the situations that you can claim on. For example, you would be able to claim for a stolen stereo system but not a damaged CD. These often follow common sense, but some policies have more exclusions than others so make sure you fully read the terms and conditions so that you are fully aware of what you can and can't claim for.

2. Valuables cover Some home owners insurance policies cover building and contents but stop short of insuring valuables such as jewelery. Others insure everything that is actually within the home. You should ask whether valuables are covered in your basic policy or not and, if not, whether you can actually add that element to your policy.

3. Excess/deductible Most policies will stipulate that you will have to cover the first x amount of dollars on each claim. This is called a deductible or excess. You are usually liable for the first $50 to $250. This is a huge step, especially if you are looking to recoup your losses so shop around for the best value excesses.

4. Off premises cover Home insurance coverage may or may not extend to personal property being taken out of your home. Technically it is more susceptible to damage if removed from your home, which is why some companies do not provide cover. However, some companies will as part of your policy or as an add on, so watch out for this.

5. Repair and replace Company policies vary as far as home insurance coverage for damaged items are concerned. Some insist on having an assessor examine and attempt to repair broken items before replacing them. If you would prefer to simply replace items yourself then read the policies very closely before signing anything.

6. Claim limits and procedure Every home owners insurance policy varies in that the monetary amount you can claim can be as low or as high as they stipulate. It may be better to request the amount of cover that you would like and then choose a policy that complies with that. Also, claims procedures can range from extremely simple to very long and drawn out. Have a look at claims policies for full details but if something sounds complicated, then it usually is!

Get The Right Home Insurance

Can you think of anything in your life, outside of your family of course, more worthy of protection than your home? It's not just a case of material worth but increasingly of massive personal significance. Think of all the time we spend these days hunting down somewhere that we feel fits the bill perfectly. So much consideration goes into the process of finding the dream home these days location, size, suitability and increasingly that much discussed but hard to pin down 'wow' factor. It's hard to imagine a more devastating blow than suffering significant damage to your home or its contents. All this means that home insurance should surely be a top priority.

Making sure you end up with the right policy to fit your needs and that you feel is cost-effective can be a complicated process though, it would be nice to think you could take the easy route and default on a standard policy but, really, there's no such thing. You'll need to check though any prospective insurer's levels of cover and various exclusions. But let's start by breaking the subject into the two principal types of cover Building Insurance and Home Insurance.

Building Insurance

Building insurance should cover more than simply the main building and include any outbuildings such as garages as well as gates, patios, sheds and fences. It's important to give any exclusions or clauses, and there will almost certainly be quite a few, a thorough examination. Make sure you know what's covered and what isn't. Don't over-insure yourself; the sum should be the cost to rebuild rather than what the property is worth. In certain cases the insurer will only pay out the cost to rebuild anyway. A rebuild cost should be pretty cheap and easy to come by so make sure you get it right. Also take into account the likelihood of rebuilding costs increasing over time especially if you make any modifications. A worthwhile piece of advice for cutting costs is not to pay with a direct debit, it could mean being charged as much as 30% interest. Think about paying with a 0% on purchases credit card.

Contents Insurance

Once again it is important to be certain that you are insured for the right amount. Try compiling a full check list of everything, it may seem long-winded but is definitely worthwhile. It's quite possible that your insurer will put a limit on individual items, if this is the case and a single item is worth more than an imposed home contents limit try to negotiate an increase or, failing this, you'll have to insure it separately. Make sure your contents are insured beyond the basic theft and fire cover and encompass other threats like storms or flooding. A decent money saving idea is to look at the possibility of a combined deal that covers both contents and building, this might be offered at a reduced rate and should obviously speed up the process. Don't just plump for a combined deal for convenience sake though; a good policy for contents could be teamed up with a less impressive deal for the building or vice-versa.