Important Questions To Ask About Home Insurance Before Accepting the Policy

One doesn't need reminding that their home is one of the most valued investments. And like one needs to make sure their car before taking it out on the road; one also needs to select the right home insurance policy prior to a mortgage company bring their loan to completion.

The realtor may present one with stacks of pamphlets or a list of insurance policies to choose. But the trick here is not to rush it. One should take ample time in selecting their home insurance policy.

To make this process a little less time-consuming, here are some key questions to ask before accepting any home insurance schemes.

Will The Insurance Cover My Home Regardless Of The Damage?

To set things straight, damage caused by flood is not covered in standard insurance policies. However, if one lives in or around a flood-prone area, there is a provision for flood insurance.

Some policies may cover overflow water damages, so before deciding, ask the agent if flood insurance is necessary. Another thing here is that some policies place a limit on claims for fine jewellery or art. Thus, it would be a good idea to consult with the agent about the limit of the coverage- prior to accepting.

What Damage Coverages Does The Policy Include?

However, quality home and contents insurance policies in Melbourne do provide coverages from a variety of damages. So, without any hesitation ask the insurance company about what coverages they include in their offered policies.

Ideally, quality home insurance schemes include:

Structural Coverage: It includes protecting the physical structure of the property against a variety of risks. Other coverage includes electrical apparatus, plumbing, air-condition and heating.

A thing to remember is that the land upon which the house is constructed is never included in the home insurance scheme.

Additional Structure Coverage: This includes coverage of detached garages, fence surrounding, a backyard shed, driveway, mailbox, pool and retaining walls.

Property/ Personal Possession Coverage: It covers electrical appliances such as television sets, fridges, ACs, furniture, beds, couches, dining table, rugs and even curtains.

Coverage For Additional Accommodations: Additional accommodation coverages include extra rent, food, travel cost and other living expenses.

When asking about each of these aspects, make sure to get every detail associated with the policy. It will help in making the right decision.

What About Liability Coverages?

One should not forget to ask about the policy's liability coverage arising due to bodily harm to a third-party. Quality house insurance will include:

Medical Payment Coverage: It covers the costs of minor injuries. Instances like - A member breaking their hand while doing some work in the backyard or a visitor slipping on the stairs and hurting their back.

Liability Coverage: This protects homeowners from any physical harm or injury. It also covers the damage caused to a third party person or property.

Example - A tree from your garden falls and breaks the neighbour's fence. In such a situation a quality home insurance policy will compensate for the damage incurred.

These are a few important questions to ask before selecting a home insurance policy. If there is anything else; one should make it a point to ask their insurer/insurance company before-hand. And while communicating, be sure to give them as much details as possible to get a good policy and process its claim quickly. Plus, keep all relevant documents in support of the claim. The insurer will want to see it.

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Created on Jan 20th 2019 23:07. Viewed 494 times.

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