If you value your life, you get life insurance coverage and if you value your health it is possible to take out a health insurance policy. These contracts protect you or your named beneficiary should anything bad happen. The same applies to your home and your property. If you value your property, you should take out a property insurance policy. There is no need to take out anything overly comprehensive as there is always a cheap property insurance policy that can be found to suit your specific needs.
Insurance Cover Types
There are basically two types of property insurance: the "named peril" policy which covers your property against certain unforeseen loses due to a specific cause as identified in the policy, while the "all-risk" policy covers any type of loss including those identified in the policy. The former can be a lot cheaper but the coverage is rather limited.
Getting the Most Coverage
It's always a good idea to buy property insurance based on the replacement value and not the cash value or depreciated market value. Always remember that the objective of any property insurance is to allow the owner to recover damages. Over time, your property's cash market value diminishes thanks to the accounting practice of depreciation. However in the case of a loss, replacing your property will cost a lot more than its depreciated value.
A cash value policy is a very cheap property insurance policy with low or diminishing premiums, but it can leave you with virtually nothing to rebuild your life back if you lose the property many years down the road. Low premiums are always the objective but be confident that your policy has the coverage you need.
Insurance Costs
The more affluent families with larger and more expensive properties and valuables inside their homes will pay higher insurance premiums. If you're among them, you can forget about looking for cheap property insurance as you won't qualify. Topical coverage for the home's content is around 50% of the homes value. Valuables like paintings, jewelry, coin collections and antiques have a cap of around $2,500 per item so you will need a personal rider that adds to the cost.
If you practice a profession or work from home, you need a home-business endorsement to get insurance coverage for the equipment you use at home as well as your liability. Speaking of liability, if you have swimming pool, a dog, or a raucous teenage kid, you're open to lawsuits so you will need liability insurance as well.
Lowering your Premiums
There are certain things you can do to negotiate for a lower premium to get truly cheap property insurance. Installing alarm systems in your property can bring down the premium by as much as 15%. Deadbolts on your doors and smoke detectors in the house can also get about 5%. If you get two or more policies from the same company, insurers are more than happy to add a further discount.
0 komentar: