One of the first things you should take into account when you move into a home is purchasing home insurance. Generally, home insurance is not mandatory, unless the house is mortgaged. Even so, the majority of people have their main home insured, according to some recent statistics.
If you are one of those who still do not have home insurance, whether or not you own the home, you should know that it can avoid high expenses in the event of a setback, from a leak to the theft of your belongings. Each home policy has different coverage; some include flood or fire damage. In addition, depending on the use of the home, there are different types of insurance (insurance for renters, for second homes, etc).
For this reason, before choosing a policy to protect your home, you have to take into account different aspects that can cause the price of your insurance to increase or let you less covered in cases that are necessary for your home.
Here’s 7 tips shared from the experts of a very popular company, Home Insurance Scottsdale Az, so that you get it right when it comes to finding your insurance.
One of the most important aspects to take into account when opting for home insurance is the concept of underinsurance, which occurs when the value of the insured capital is less than the new replacement value of the insured object. For this reason, the assessment that you make both of the content (normal furniture, jewelry and money, and objects of special value) and of the container (value of the building) is very important, since in the event of an accident, the insured will be compensated with an amount proportional to the sum insured.
The risks covered by each insurance may vary from one company to another. Mainly the damages that almost all the companies usually cover are those caused by: fire, smoke or explosion, water leaks, meteorological phenomena such as snow or hail, lightning strikes, changing locks, electrical damage, broken mirrors, crystals and sanitary devices, among others.
In addition to the aforementioned coverage, there are many others that can be added in a complementary way, such as: assistance at home, which can be 24 hours a day; robbery on public roads; urgent medical care; pet insurance; travel assistance, etc.
Civil liability is usually one of the basic coverages and one of the most important in home insurance, since it is responsible for covering the damages that the insured and the home may accidentally cause to third parties. This type of damage can be due to water leaks or objects that fall from a window, the roof or the facade, among others. Assuming the costs and compensation for said damages can cause serious disruptions in the family economy, it is important to know the limit set for this coverage, which will be higher depending on the premium to be paid.
Losses must be reported within 7 days of becoming aware of them, unless a longer term has been established in the policy. In case of non-compliance, the insurer may claim damages caused by the lack of declaration, reflected in the Insurance Contract Law.
The premium is the cost of insurance established by the insurance company. There are several factors that determine this cost. Among them, in addition to the insured capital, the companies will take into account the identity of the insured and the year the house was built, the postal code, the use made of it and whether it is inhabited or not. In the event that the activity is professional, the company may refuse to insure.
On the other hand, the company will also take into account whether recent reforms have been made to the pipes and electrical system, the more recent the lower the premium to be paid, since these are one of the most common problems.
The insurer can impose a grace period, that is, a period until which the policy will not be effective, and during which they will not cover any damage that may occur. In addition to the grace periods, you can find risks excluded from home insurance, such as damage that originates from public pipes, if the home is rented to a third party and you have not notified the company or freezing of water if the home has been uninhabited for more than 72 consecutive hours, among others.
Choosing home insurance can become very complicated due to the great offer that the market presents. For this reason, it is best to compare the prices and coverage of the different companies before deciding on one.
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