Do you know what will happen during the next day, week, month, or year? Unfortunately, as the expression goes, death and taxes are the only guarantees in life. Though we should certainly plan for the future, we have no crystal ball to determine exactly what will happen after this juncture in time. Enter insurance. Insurance of all types helps to ensure that we have prepared for any accidents or emergencies that could occur in the future.
It is a major mistake not to take our insurance, such as life insurance and health insurance. Failure to do as such could literally be a matter of life and death. When purchasing a home, you must secure Home Insurance/Buildings and Contents Insurance. However, it is vital that you avoid as many mistakes as possible, to ensure that you select the right insurance plan. Here are some guidelines:
1. Never underestimate (literally) the contents and possessions of your home.
It is important that you secure enough insurance for your contents and possessions. Make sure that you walk into each room of your house, and conduct a physical inventory of what the room contains. Before you secure Buildings and contents insurance, it is vital that you are thorough in listing everything. Also, be reasonable about the cost of replacing items.
It is important to secure an independent evaluation for items with high values, such as antiques.
Finally, avoid "blanket cover" Home Insurance packages. These types of deals provide insurance based on the number of rooms your home has, rather than the precise value of the items in them.
2. Never disregard shopping on the Internet
As with other financial products, the Internet has changed the way that we buy insurance. In the past, the majority of people secured Home Insurance via their mortgage lenders. The main reason was that it was simply easier. However, the Internet has made shopping for Home Insurance easier. You can find affordable Home Insurance, without leaving your home!
3. Never be unprepared when you apply for Home Insurance
When applying for Home Insurance, what should you expect? Here are some of the questions that a Home Insurance provider will ask, when you apply for insurance:
• Do you have a garden?
• How many bathrooms does it contain?
• How many bedrooms does it contain?
• How many doors have access from the outside?
• How many windows does it contain?
• Is there a basement?
• Is there an attic?
• What is the name of the company that supplied your mortgage?
• What type of sewage system is your home connected to?
• What year was your home built?
These questions are important before securing mortgage payments insurance. The report that you received after having your home inspected should contain all of this information. This high number of questions may seem overwhelming. However, keep in mind that when you apply for Home Insurance, you typically are quite close to reaching settlement. Securing the aforementioned information will ensure that getting Home Insurance will be a relatively simple task.
4. Never forget to shop around
In once read someone write that "You can always get a better price." In the case of Home Insurance, that bit of wisdom is still true. The rule of thumb when shopping for any UK financial product, is to get at least three quotes. The Internet makes it easier to shop for insurance, such as Home Insurance.
It may seem convenient simply to purchase Home Insurance through the same company from which you secured your mortgage. However, as with buying life insurance and mortgages, this is not worthwhile if you are required to spend an arm and a leg.
Finally, never let your mortgage lender scare you with a "tie-in," which they charge if you secure Home Insurance elsewhere. You can probably save much more than that, if you find Home Insurance at a lower price.
5. Never buy Home Insurance without knowing the basics
When you purchase a building, such as a home, you must take out Home Insurance. People also refer to this as Buildings and Contents Insurance. This insurance covers both the structure of your home, as well as your possessions within its walls.
6. Never pay too much via tie-ins and bundling
Home Insurance is good, while tie-ins and bundling are bad. Bundling involves purchasing Home Insurance through the same company from which you secured your mortgage. The problem is that bundling typically is pricey and more expensive than if you had shopped around. One sneaky trick that mortgage lenders often use is to give you the impression that it is mandatory for you to take their Home Insurance, to avail of a lower mortgage rate.
You should be just as wary as when securing mortgage payment protection quotes. These same mortgage companies also frequently charge you a tie-in if you fail to take their mortgage and Home Insurance as a package. However, the chances are miniscule that you will get the best value by taking the mortgage lender’s bundle.
7. Never sign anything before you review everything
After you choose an insurance company, read all terms, conditions, and exclusions related to the policy. Then you are ready to sign the contract.
8. Never underestimate your home’s value after rebuilding
Use caution when estimating the value of your home, after rebuilding it. Typically, the value is less than 50% of the market value of your property. For instance, rebuilding costs exclude the land’s cost. Make sure that you avoid underestimating the value of your house. If you need some guidance, you can secure a booklet entitled "House rebuilding costs" from The Association of British Insurers.
9. Never buy more or less coverage than you need
When purchasing any type of insurance, such as Home Insurance, make sure that you avoid buying more insurance than you need. More importantly, avoid being underinsured after underestimating your home and its contents.
10. Never disregard the UK government’s advice on insurance
The government can help.
Tags: UK government’s advice on insurance | UK government’s advice on insurance | Mortgage payment protection quotes | Mortgage payment protection quotes | Life Insurance and mortgages | Life Insurance and mortgages | Mortgage payments insurance | Mortgage payments insurance | Buildings and contents