Insurance Site Critique

 
If you are unfortunate enough to suffer loss or damage to your home or personal belongings, the last thing that you will want to discover is that you are not insured or that the building and contents insurance that you thought you had in place will not cover you.

For many people, the first time that they really think about their home insurance is when they need to make a claim. It is vitally important, however, to make sure that you have adequate cover in place before a loss arises to ensure that the appropriate protection is there when you need it.

Building and Contents Insurance

 
You can protect yourself from loss or damage to your home or belongings by buying building and contents insurance. It is possible to buy cover for building and contents separately or as a combined policy.

If you are a tenant then you will probably not need to take out buildings insurance as this will be the responsibility of your landlord. If you are a homeowner, however, you will need to have it in place as a condition of your mortgage.

A buildings insurance policy will provide you with cover if your house or its permanent fixtures and fittings are damaged as a result of a peril that is listed in the policy. Perils covered usually include fire, flood, storm, theft, subsidence, falling trees and burst pipes as standard, although it is possible to purchase additional cover for accidental damage, for example.

It is a good idea to insure your contents whether you are a tenant or a homeowner. While you may not think that your belongings are valuable, if you were to lose them all in one go in a fire then it is likely that you would find it difficult to replace them.

Contents insurance is usually on a ‘new for old’ basis, which means that you will be provided with an equivalent replacement for any item that is irreparable. There are some policies, however, that operate on an indemnity basis, which means that deductions are made for wear and tear. It is important to check the policy’s terms and conditions.

The perils covered by a contents policy are often the same as those covered by a buildings insurance policy. Again, it is possible to buy additional cover. Accidental damage cover is popular, as is cover for personal possessions such as laptops when they are taken out of the home.

Landlord and Tenant Insurance

 
If you are a landlord then you should ensure that you take out an insurance policy that is specifically designed for landlords. Landlord insurance policies usually provide cover for the building, fixtures and fittings and the landlord’s legal liabilities.

Additional cover is available that can prove useful. Legal-expenses cover can help in the event that you need to take action against a tenant for non-payment of rent, while rent-guarantee cover can help if your property is empty between tenancies.

If you are a tenant then you should arrange your own contents cover – this will not be provided under the landlord’s insurance. There are a number of insurers who offer specific tenants’ policies, including some for those who live in shared accommodation such as students.

Whatever type of building and contents insurance policy you opt for, it is important to ensure that you have the right level of cover in place. If you do not have an adequate sum insured under your policy then you will not have enough cover in the event of claim. Similarly, if you over-insure then you are paying a premium for a level of cover that you will never be able to claim for.

When looking to insure a building you should get cover for the full rebuilding cost. This is different to the market value of your home and, depending on the area that you live in, could be more or could be less. Many insurers have calculators that can help you with assessing this. The Royal Institute of Building Surveyor’s Building Cost Information Service can also be helpful.

To work out the amount that you should insure your contents for, it is a good idea to run through all the items that you have in each room of your home and work out how much it would cost you to replace them all. Remember to include items such as clothes and crockery, as well as any items that you have stored in sheds and outbuildings.

If you have any high-value items then you should tell the insurer. Most policies have a maximum amount that will be paid out per item, so anything over this amount needs to be notified to the insurer so that it can be fully covered.

When arranging your insurance cover, it is essential that you familiarise yourself with the terms and conditions of the policy that you choose. It is pointless arranging and paying for adequate insurance cover for your home if you then invalidate it by accidentally failing to do something that the policy requires.

The conditions will depend upon the specific policy that you have. Common ones are that your home must not be unoccupied for more than 30 consecutive days and that you should notify the insurer of any change in your circumstances that affects the risk – for example, if you were at home all day but will now be out at work.

It is important to arrange adequate home-insurance cover so that you have appropriate protection if an unforeseeable event happens. By taking the time to make sure that the policy you have is suitable for your needs and that you understand the terms and conditions, you can ensure that the cover is there when you most need it.

We often hear about how important home insurance is for property owners and how crucial landlord insurance is for commercial property owners, but the one area that often gets ignored is tenants.

Although tenants do not own the property they live in it is of course filled with all of their belongings and is essentially their home, meaning tenants insurance is very important. You may think that as it is not your house you don’t need it but there are some very good reasons for investing in tenants insurance:

 Landlords Won’t Cover You

The majority of landlords will have comprehensive landlords insurance that covers them against damage to the property, but this does not cover tenants. In the event of a fire, for example, the landlord’s property would be insured and he would get money for the loss of the building, but the tenant’s contents would not be covered, meaning you could lose all of your belongings and get nothing back.

 Property Damage

When you move into a rented property you will have to pay a deposit and in the event of any damage caused, your landlord may take this deposit as compensation for repairs. However, there are circumstances when it is not the tenants fault and you could end up losing a deposit you should have gotten back.

 Tenants insurance would cover against such circumstances and could stop you from losing a deposit you need for the next property you move into. If the damage is not your fault you will be covered and reimbursed with the correct insurance.

 Flat Mates

Anyone who has rented a property during Uni knows that you don’t always end up with the best flat mates in the world. You may go away for a weekend and come back to find some of your stuff damaged or even missing, through no fault of your own, and this is where tenants cover would protect you and help you claim back on damaged or missing goods.

 It’s not something a lot of tenants take into account, but you have to remember that you won’t be covered by your landlord’s insurance and so if you want protection you need to invest in a comprehensive tenants insurance policy.

If you have a secure property you are less likely to be burgled. Home insurance providers may see you as less of a risk so could charge you lower premiums.

When it comes down to how to make your property secure, a lot of it is common sense.  Most people know that they should lock their doors, but there are sometimes things that you might overlook that an experienced burglar may look out for.

Here are some tips on keeping your property secure:

Make sure your doors are secure- Are your doors old and made of a flimsy material that would be easy to break.  Burglars can be experts at knowing which type of doors are likely to be easiest to break into.  If your doors just look weak then this could almost be an invitation for your home to be broken into.

Are your locks modern and secure – Modern locks will make your home more secure, they should also conform to the British Standards for locks.  Burglars are more likely to target homes that have locks that are not up to date and generally therefore easier to break into.  Modern locks normally make it harder for a burglar to gain access to your property.

Protect your keys – There is no point having the best doors and most modern locks if the keys to your doors and windows are on display or easily accessible.  If a burglar can see your keys and it just takes breaking a window to get to them then that won’t be too much of an obstacle.  Don’t leave keys in doors and windows either as this can make it easier for burglars to get hold of them.

Securing your property with the correct locks on your doors and windows will help you become less of a risk when you take out your home insurance.  An insurer may well see you as less of a risk of being broken into and so your premium might be lower.  There are other factors that insurers take into account when they look at how risky someone is, but home security is very important.

Most people understand the need for rental insurance , such as if your home is vandalized or belongings are stolen. However, most people do not know how to obtain the best rates on their renter’s insurance policies.

Renter’s insurance will pay to help you replace your personal belongings, such as furniture, electronics, and other such items, if they are damaged or stolen. What you may be unaware of is that renter’s insurance also pays to cover in case a visitor is accidentally injured while on your property. This coverage will also pay in case there is a fire and you need to find a new residence quickly.

The following are some of the ways that you can save on this type of property insurance coverage:

For one thing, do not go with the first policy that you find. It is very much in your best interests to shop around and compare rates. One of the best places to start is at a comparison insurance website. You should begin by comparing at least three separate insurance companies, and then choosing the company with the lowest quote but best service and coverage.

Another way to save is by increasing your deductible. You may not think so, but by increasing your insurance deductible you will have much lower monthly payments. This can save you up to fifteen percent on your yearly premiums on insurance.

Another option, known as umbrella coverage, involves obtaining your renter’s insurance and your auto insurance from the same provider. This can amount to another ten to fifteen percent savings.

Finally, if you install security devices within your home, this can also lower your insurance policy premiums. Many companies will give discounts for things such as smoke detectors, dead bolts, and fire extinguishers. If you do not already have these items, request your landlord to install them because it is to his or her benefit as well.

photo credit: Paulo Marcel Coelho Aragão
 
The worst time to wonder what your home owner’s insurance covers in when you want to file a claim. Everyone should know ahead of time what is and what is not covered and have made their decisions concerning buying additional coverage based on that knowledge. There are two types of basic home owner’s insurance: hazard insurance, usually required by lenders, and liability which is not always required.

Hazard Insurance

Hazard insurance is what most people think of when they think of home owner’s insurance; it covers fire, theft, vandalism, wind, hail, water damage and smoke damage. There are limits of course; if your house catches fire due to a careless act on your part, the insurance company will most likely not pay. They expect a policy holder to take reasonable precautions and not engage in hazardous activities. Hazard insurance will generally cover pools, garages, sheds and outbuildings; however, it won’t cover business losses unless you have purchased a rider so if you have a building you are conducting business out of you will need to look into adding more coverage.
One of the reasons it is important to read your insurance policy, and if necessary quiz your agent, is that many people are unpleasantly surprised by the things that are not generally covered, things that could happen through no fault of your own. Earthquakes aren’t covered, although in areas of the country less prone to them it can be purchased as a rider for a reasonable price, and the same goes for hurricane damage. Landslides, subsidence and expansive soils are not covered either. Subsidence is when there is a hollow under the ground causing the ground to cave-in. It occurs where there has been extensive mining; sink holes like those which commonly form in Florida are another example of subsidence. Expansive soils refers to ground primarily composed of clay that due to expansion and contraction from wet and dry weather can crack a house’s foundation.

Liability

Liability is pretty straight forward; you pay a premium in exchange for protection against third party law suits and claims. For example if the mailman or the meter readers trip while on your property, then you are generally covered unless you have knowingly created an unreasonable hazard. When an insurance company pays out on liability insurance it usually goes to the third party not the insured. The insurance company also is expected to defend the insured against claims unless they committed a crime or some other act outside the boundaries of the policy. Unfortunately, few people know what their insurance company considers a reasonable hazard as opposed to an unreasonable one.

Keep in mind as well that these policies will generally no offer much protection when it comes to the valuables in your home. If you have pricey electronics, furniture or jewelry you will most likely need to purchase contents insurance on top of your regular policy. The best way to protect yourself is to know ahead of time that your family’s home and possessions are well protected and that you will be able to land on your feet if disaster strikes.

Rebecca Jones is a financial and insurance blogger and contributing writer for Policy Expert

According to British insurance representative, Assetsure, younger homeowners are using the comparison sites to source their home insurance quotes, while older homeowners still use homes insurance brokers. That’s right, to be young and cool, you must use the Internet to source insurance quotes.

 Being young and cool though, is not the only benefit of using comparison sites. We put homes insurance brokers up against comparison sites by comparing the following criteria:

 Premiums

Given that comparison sites don’t get a percentage of the premium as payment, the insurance quotes they offer are often cheaper than those of home-insurance brokers. Homes insurance brokers get a percentage of the premium or a fee from the insurance company, which is usually factored into the quote. This makes them more expensive.

 Feedback

Comparison sites get insurers to contact you, usually telephonically. This, however, makes understanding the policy more complicated as you can only go through it once you’ve agreed to the terms over the phone. Homes insurance brokers, however, go through the policy with you so you know exactly what you’re getting in to before you sign.

 Choice

Home-insurance brokers are limited to those insurers that deal with brokers and also to those insurers with whom they have established a rapport. This means you get fewer quotes from them than if you use a comparison site. Certain direct insurers don’t use hom insurance brokers, which is why they can offer cheaper insurance quotes.

 Cover

 As the insurers used by comparison sites offer quotes direct to the public, their policies are generic. Although they offer some customization (such as the amount of excess payable), these policies are not as tailored to you as that of a specialist insurer. Home- insurance brokers can source quotes from specialist insurers if you require something more detailed and comprehensive than a standard homes insurance policy.

 Time

Homes insurance brokers run on sandwiches and caffeine, while comparison sites run on Internet, which is a lot quicker. Comparison sites send your details to multiple insurers at once, who then contact you immediately. Homes insurance brokers still contact their insurance partners directly.