With the rate that the global economy is going, many homeowners are thinking twice about insuring their homes. As an added cost to a lot of other expenses which should be prioritized, at first glance it would seem as if it’s needless. However, facts and events seem to suggest otherwise; according to Advanced Investors, there are certain disadvantages in not having a home insurance. Personal assets may be lost in case an unfortunate circumstance occurs, and lifelong savings might be spent to remedy the damages. So even if there are reports that higher premiums due to increase in taxes are imminent, especially in Ireland as reported by The Independent, being covered is still advantageous in the long run.
It’s not just the lack of a policy which leads to problems; under-insurance can also cause quite a hassle. Aviva, an insurance leader both in the UK and in Ireland, stated in an article that flood, fire, or burglary will cause concern to homeowners who are unaware of their policy exclusions and excesses. However, it’s also not healthy to over-insure—this is the current predicament that the Irish are facing, according to the Consumers Association of Ireland. These problems can altogether be avoided if we have knowledge of what we’re getting into.
To help us with this, CNN Money gave us tips on what we need to know about home insurance. Here they are:
· Know the value of your home. Establish the replacement cost of your house before choosing a policy.
· Compare various insurance companies by researching on them before deciding on one based on performance and customer satisfaction.
· Read on the reputation of your prospective insurer. Low prices do not necessarily translate into great value. Financial stability and records for claim service should be considered.
· Know your coverage. Go beyond the basics of your policy, and take time to discover the intricacies within it.
· Always update your policy and be well-versed about it before filing claims in order to avoid surprises.