Building and content insurance are not required by the law. However, mortgage companies often require at least building insurance and for one’s peace of mind, both building and content insurance are necessary. There are several important considerations to take into account before one purchases a building and contents insurance policy. The considerations prior to purchase include premium costs, the amount of contents insurance needed, the value of one’s buildings and ways to lower the overall costs.
The costs of the insurance are related to the quantity of insurance needed, the geographic area, and the deductibles selected. Through receiving quotes from several different company’s consumers can choose the lowest premium for the insurance they require. These quotes are offered to potential customers for free and can help one to determine not only the price but the overall customer service of the insurance company. The insurance agent providing the quote ought to answer all of one’s question and help them to understand the coverage that they are being quoted.
When purchasing building and content insurance, it is critical to buy the correct amount of contents insurance. Going through one’s home and writing down the contents of each room can help one to report the value of their contents accurately. Further, when choosing contents insurance one can chose either replacement or wear and tear policies. Replacement policies reimburse the cost to replace the item as new whereas wear and tear policies depreciate the price of the contents in regards to the value at the time of replacement.
Knowing the cost of the building is another essential step. Consider having an independent appraisal to help estimate the building’s price. Further, be sure to include any outbuildings, sheds, and garages as part of the building insurance policy.
Finally, before purchasing building and content insurance consider adding home protection measures that are known to lower premiums. Adding things such as smoke detectors, burglar alarms, sprinkler systems, and other home protection devices will reduce the premiums for one’s policy. These devices range in installation price and even adding one home protection device will lower the premium on one’s insurance policy.