Buying Home Insurance Guide

If you have recently decided to insure your home, there is a necessity for buying home insurance guide. This guide provides detailed information on how to make decisions when you purchase homeowners services as well as the information about types and prices, which will differ according to various companies and policies. Homeowners guide can help you to choose the right coverage for protection of your property.

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Thus, in order to gain a better understanding of the home insurance market, homeowners guide provides the basic information about the most important paragraphs during the purchasing of property protection.

Types of risks and coverages

The vast majority of companies have standard policies that include a set of the most common risks:

    • fire (including gas explosion)
    • incidents (the effect of liquids from water, sewage systems)
    • illegal actions of third parties (theft, robbery)
    • prevention of natural disasters (storm, tornado, rainfall, hail)

However, if you want to insure your home from earthquake or flood, there is a necessity to add these paragraphs to the contract and to purchase them at an additional cost.

The choice of coverage depends on the location of your living place and the frequency of occurrence of natural accidents in your region. It is recommended to select individual risks which you will need, in order to optimize the cost of insurance.

The main items for protection are the following:

    • constructive elements (roof, walls, foundation)
    • interior finishing and engineering equipment (window constructions, heating)
    • household property (furniture, jewelry)
    • personal liability (causing damage to neighbors in case of fire, pipe break)

In order to develop the services market, companies provide a variety of types and conditions of protection. Customers choose the company and the necessary package of services in accordance with individual requirements.

How to estimate the real cost of home insurance?

The price of home protection depends on many factors, such as the choice of the company, the type of protection, the size of the house and land, etc.

Cost Factors

There are main factors determining the cost of policy such as volume of insured risks, the usage of home, the presence of an alarm system and protection from fires, floods, etc. Also each agent turns attention on cost of materials (construction and finishing) & lifetime and condition of the house.

Protection Type

Companies exist at the expense of commission charged, so they are interested in offering the maximum of types of house protection. You must analyze all of them and choose only appropriate types for yourself. Agents can suggest insuring of home without inspecting it on the spot.

How to insure your home

Companies offer a standard contract, a ready-made package, based on the market value of your home. The cost of such transactions often includes completely unnecessary services, which raise the commission. The best option is to conclude a contract after a full survey of your living place and identifying of specific items for protection.

In order to be sure while protecting your own home, a few steps should be taken into consideration:

  • Analysis of companies. It is necessary to choose an organization that stably works on the market, cherishes its customers and pays reimbursement on time. That is why consumers may compare ratings of the companies and choose the most optimal combination for oneself.
  • The choice of risks necessary (partial or standard). The total cost of the service depends on the number of risks, therefore there is no necessity to purchase a full package of services. The best option is to choose the most possible risks applicable to your home. Ultimately, this will lead to a lower commission rates.
  • Providing documents to the company. To maintain competitiveness organizations are interested in clients, therefore the set of documents is minimal and is owned by every owner of property.
  • Real Estate Agent Survey. In order to save your own funds, it will be better to invite an agent for a personal property survey to determine possible risks. He will establish the estimated value of the property and provide details about the availability of individual programs and bonuses.
  • Conclusion of the contract. To save yourself from surprises, you need to carefully read the terms of the contract. You must be sure that when an insured event occurs, the compensation will be full and urgent.

Living in an insured house will save not only money from possible costs and troubles, but also nerves. According to our guide, it is important to take into account your own interests and needs, choose the right insurance company, carefully study average home insurance cost, the contract and policy, and don’t forget about paying premiums.