The price of a home is not the only factor that you consider when buying a home insurance policy; there are many more factors that need to be considered.
Whether you have decided to buy a new home insurance policy or are renewing your old one, these aspects need to be considered.
- Does it cover rebuilding cost?
Building insurance provides you financial protection in case some unfortunate incident takes place, such as a fire or a tree falling incident.
For example, a good home insurance policy in Florida will cover one-tenth of the rebuilding expenses. More can be covered provided it is agreed upon at the initiation of policy.
While looking over insurance estimates, pay close attention to the rebuild cost section. If it does cover that part, then you are good to go.
- Is home content coverage included?
A good home insurance policy needs to cover the expenses of home contents. Now, before making an estimate about the contents of your home it is advised to do a room by room survey while making a list of overall inventory.
So, that in the case of a theft, the insurance company can actually pay you one-tenth of the amount you were insured for.
- Is Accidental damage coverage part of the policy?
Pay a close look to the basic policy that entitles you to the coverage of accidental insurance. A good insurance policy should cover the basics of accidental damages such as a car crashing into your house, faucet leakages & the repairs, maintenance as well as damages to home contents, such as computers, mirrors, home entertainment system and other similar components.
- Does it provide proper coverage to valuable items?
Normally the valuable items including watches, jewelry sets, sports equipment need to be enlisted on the insurance agreement with their value. It is better to know how much percentage does your home insurance company actually covers for it.
- Are regular items such as Frozen food & Keys covered?
While pondering over the home insurance decision, a minute but vital factor that needs proper attention is keys & lock coverage. There have been cases where insurance companies denied insurance amount because the robbery did not include forced entry and said that it was a case of deception.
Other than that the insurance companies usually cover garages & outbuildings but other contents – such as food inside a freezer – are not normally covered, especially when you cannot afford to lose that.
It is worth making sure you get proper coverage for freezer contents as well.