Home Insurance Tips
Home insurance is a product designed to cover possible losses that may suffer a home theft, damage electrical short circuits broken plumbing domestic accidents etc. Then you have all the information on home insurance how much they cost and what they should cover. The mission of home insurance is to protect homeowners and cover the costs of these mishaps in exchange of course of an amount not usually go beyond 300 per year.
What should homeowners insurance cover?
Damage the continent of the house itself ceilings, floors, facilities, windows. Having a home insurance, the insurance will pay for repairs of damage caused by fire theft water, etc. Before signing, it is necessary to ask what accidents or disasters include and what not because every company is different.
Damage of the content (what is in house) covers the repair or replacement of furniture and household goods. The idea is to be covered by the value reset ie, so these items would cost if we had to buy them again. However, it is common for companies secure them for the actual value, minus depreciation suffering from use.
Liability: covers repairs and damages the insured has to pay others for the damages caused to them (for example, if you leave the gas and cause a fire). In the event of injury, such compensation can be substantial. Legal defense: covers legal expenses if others have caused damage to our property. It includes criminal defense, as owner or tenant rights etc. You need to ask the company and be clear about how long we will be covered for not bring surprises.
Many companies apply what they call proportional rule. Compensation means are proportional to premiums paid. So when taking out a comprehensive insurance policy from home, it is essential to assign the correct value to continent and content.
The organization OCU advises consumers and users in this regard choose an insurer that allows a margin of difference in valuation of at least 15% before applying the proportional rule. In the end, it depends on the customer to choose the coverage. For example, if our furniture is not very valuable and we do not have jewelry or artwork maybe not worth insurance to cover the continent and can save that part.
How can I pay?
If it is an insurance contract required by the bank that gives us the mortgage, the entity could propose us a PUF (single premium financed), ie the price of insurance is added to the mortgage debt and pay diluted in monthly fees. The very small portion is paid every month. The bad: the bank is charging us fees also on the price of insurance throughout the life of the mortgage. In any case, we must be clear that it is not necessary to hire the multi-risk home insurance in the bank. Serve any insurance company so we can compare prices and coverage before choosing.