Skip to main content

Home insurance is the best practice

Home insurance isn’t really complicated the cover you need is usually pretty much contained within the standard home and contents policy. You also need to know how to check your policy to make sure you are adequately covered. Best practice for homeowners is to learn how to go through a policy and understand the cover provided.

The issues:

Home and contents insurance provides a degree of cover for financial loss in the event of fire, building damage, theft or other events. The problem for homeowners is that the amount of insurance payable needs to be monitored to ensure that the insurance payout meets their needs. This can be a slightly tricky process, because people tend to accumulate materials over time, and the real value of their property, particularly contents, can go up quite a lot.

If you buy a $10,000 home entertainment system, the net value of your contents has just gone up. In your insurance, unless you change the value of your cover, will however be still set at the same amount as prior to purchase. 

Home insurance basics:

You’ll notice that your policy is broken up into specific areas of cover. Each of these sections covers particular events and the amount of insurance payable in each case, up to a maximum amount or percentage amount, in many cases.

The issues for policyholders are:

1. “What’s payable if…?” scenarios: Read the policy and you’ll see that each area for which cover is payable relates directly to a specified amount. The rate of cover is based on that figure.  

2. Percentile amounts of cover: The percentage for maximum cover is derived from a set value for that particular item. You’ll see something like, “up to X% of the sum insured”, for example.

3. Cover for specific items: Contents insurance doesn’t cover particular items. It covers “contents” as a general term.

4. Fine art, collectibles and antiques: The best cover for these items will usually be a general figure for “artwork”, and it will usually be pretty low, not much more than $10,000, not enough to cover really valuable pieces.

5. Fire insurance: This is essential, and the issues with fire insurance are also related to updating cover values.

6. Building insurance: Insurance for accidents, willful damage and other types of issue can be complicated by things like renovations, rental of a property and other issues.

7. Public liability: The average policy now has about $10 million cover for this type of insurance.

Best practice:

The major incentive for homeowners and policyholders is to ensure that their insurance really covers hard dollar values. That’s not always easy in an era of fluctuating house prices and cost of living prices, but in general, higher cover is better practice, ensuring best returns.

Not all insurance policies are created equal, either. Best practice includes best policy management options. You can get excellent deals in home insurance, particularly from the new online insurers, and even manage your own policy online, without the bureaucracy of traditional insurance procedures. 

Check out your policy and do some research, if you can get a better deal then why not.

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects