In this day of rapidly escalating costs for everything from the half gallon of milk at the grocery store to the roof over our heads, it’s easy to get caught up in the bargain hunting mentality of trying to get more while paying less. Often, paying less equates to getting less and sometimes this approach will not pay off in the long run.
This is the case when choosing the best home insurance rates for your needs. Some view home insurance as a necessary evil in the overall process of home ownership and look for ways to cut corners on their policy. Looking for the lowest rate will usually require eliminating some rather important coverage from your policy.
So, before you sign your name of the dotted line of the lowest prices home insurance policy available, consider how well prepared you are to cope with the following potential home insurance claims:
1) If you insure your home for its purchase value, you may think you are providing adequate coverage in the event of a disaster. But, the cost to replace your home in five years will be greater than it was to build your home in the first place. You’ll pay a little extra for replacement value home insurance, but this is not an area you should skimp on.
2) Does your policy offer medical payments for anyone injured while in your home who may sue you? Once again, a little extra premium now may save you from financial ruin in the event your neighbour falls down your steps .
3) Your basic policy covers basic damage to your home. Does it cover fungus, invading microbes or rot? What about insect infestation? It certainly won’t cover a flood. These are additional levels of coverage you must consider in order to provide yourself with complete coverage.
4) How much coverage are you carrying for your valuables? You know the ones, the diamond engagement ring, that antique mirror with the gold leaf passed down for three generations, the gold chains you collected. Don’t assume you can automatically make a claim against your home insurance policy in the event these items are lost, damaged or stolen. A special rider to your policy will give you peace of mind over those treasures in the closet or in your jewellery box, but that peace of mind comes at a little extra cost on the home insurance rates.
Think about the accumulated value of everything that resides under your roof. Home insurance rates can run the gamut from ridiculously low to unbelievably high. Before you let your decision get swayed by the dollar signs involved,…