What is Home and Contents Insurance?
Home and contents insurance is an insurance policy that protects a home owner against damage or loss of a home and its contents. This may be one policy or two policies.
Home being the place that we come to at the end of our day, where we sleep, live and laugh is important to secure for obvious reasons. However finding the perfect insurance for a home is sometimes a difficult process.
It is already a traumatizing ordeal to experience the damaging or destruction of a home. Discovering that the home was under-insured after a disaster has struck, only makes matters worse. This article is meant to help homeowners consider the process of finding good home and contents insurance.
Gather the Information
To begin the process of finding home insurance the home owner will need various information. Some of that information will be easier to find than other information. Things to know:
- When was the home built?
- What is the home built out of?
- Is the homes location a possible threat?
- Does the home contain any special building materials?
- Is the home financed?
- Who holds the deed?
The goal is to find the best insurance for the most reasonable cost. The cheapest insurance may not provide the best insurance coverage. Investing insurance coverage before said coverage is needed is prudent.
The age of the home is important because building standards change from decade to decade. The age of the building is also important because materials that are used to build homes also change from decade to decade.
The material that the home is constructed out of is important. Not all building materials are created the same. Some materials stand up better to certain conditions. Fire is a primary concern when insuring a home.
The materials that the home is made out of becomes important in case of a fire. From the eyes of an insurance company, homes that are made out of brick may prevent a fire from spreading from house-to-house better than a home that is made out of wood.
The homes location is also an important piece of information. House that are built in areas that are prone to flooding may cost more to insure than houses that are built outside of flood zones. The same can be said of homes that are built in highwind areas. Some of these considerations should be made before the home is purchased.
Special building materials can also be an issue when shopping for home insurance. Building materials should be up to local code for both safety and reliability. Materials that are hard to replace are also an issue. Considering these aspects of home construction before purchasing a home can save a great deal of money in insurance premiums.
A home is just a shell. It is the contents of the house that make a house a home. Content insurance can cover a single item or the entire house. In some cases, a policy may cover both the contents of a home and a single item.
Contents are usually insured to an up-to value. It is important for consumers to know how much the value of the contents of their home. The value of the contents should be reviewed periodically and coverage adjusted.
For single item coverage, a qualified appraisal may be needed. Individual insurance carriers have specific requirements that must be met in order to provide coverage for a specific item.
Also static caravan insurance is not the same as regular home insurance, and a different plan is required in most cases.
The best advice is to do the research before you buy a home. Another piece of good advice is to have several insurance companies provide quotes for home insurance and content insurance. Also, look for discounts that do not negate quality of coverage