Tips when selecting insurance cover for your home

Getting your home insured is very important. You need to know that if something unexpected were to happen to your home, that you will be covered and will be able to recover lost, destroyed or damaged property quickly without too much hassle. With all the different types of home insurance policies on the market today, choosing the right insurance cover for your home can be a daunting task, especially if you have never done this before. By bearing the following tips in mind when you are busy selecting insurance cover for your home, the process will be a lot easier.

Know what you will be covered for

When comparing insurance policies for your home, the first thing you should be doing is making sure that you know what each home insurance policy covers. Some insurance policies will cover your possessions while you are travelling overseas. If you travel a lot, this kind of insurance policy can save you a lot of money in the long run on travel insurance.

Know how much your home is worth

Always make sure that you have estimates for the rebuild of your home and the amount it would cost to replace the contents of your home which you would like to have replaced should something happen. This saves you time and money in the long run – if you underinsure your home you may have to pay in the difference. If you do not know the true value of the contents of your home you could end up paying too little or too much on your insurance premium.

Don’t get bulldozed by your financial institution

The financial institution assisting you with the financing of your home may try and get you to take out home insurance cover through them directly. It is important that you know that the National Credit Act of South Africa stipulates that a financial institution can not force you to take out home insurance cover through them – even if they are financing your home. You can go to any registered financial institution or insurance company to obtain home insurance cover.

Ask questions

When taking out insurance cover for your home and comparing home insurance policies, always ask as many questions as possible. Questions about insurance cover and what is included in each policy will all help you make a more informed decision. By asking questions now, you also save yourself headaches later on when you need to make a claim and suddenly find out that you were not covered for items that you thought would be included in the home insurance cover.

Get a number of quotes

When comparing home insurance policies, the more quotes that you get, the more informed you will be about the current market. Phone around and compare prices and coverage. Finally, if you are not sure about which insurance policy to take out, speak to a financial advisor or broker who will be able to help you choose the best home insurance cover for your needs. A financial advisor will be able to recommend a home insurance policy that works for you, but does not break the bank. He or she may also know about certain clauses that are hidden which could be the difference between a great home insurance policy and a terrible one.