5 Secrets to Maximizing Your Home Insurance Policy
A home insurance policy is a cover that protects your home against certain unforeseeable risks. The unforeseeable risks may include fire, extreme weather conditions, or natural calamities like earthquakes. When you take a home insurance policy against risk, and the risk causes damage to your house during the period you are covered, you will be entitled to an insurance claim. Here are five valuable tips that will help you maximize your home insurance policy.
1. Research on the Insurance Company before Taking A Cover
There are several ways to make the best use of the insurance cover. You will increase your claim amount if you have a thorough knowledge of the company you are taking a cover from. The company with which you are taking a policy will adhere to certain standards and have different policies for different clients.
Insurance companies have different policies for their clients, so it is vital to research your policy before you take it thoroughly. The type of coverage you take will determine the remuneration you will receive if your home insurance policy ripens. You need to make sure that your family has adequate coverage from the insurance company because, without proper coverage, you might end up paying more in case of an accident or claim that may arise because of your negligence.
Do not trust what you are told by an insurance agent or a friendly neighbor. If you do not have any experience with the insurance company, you should take the time to research their policies and the claims they have made.
2. Review Your Policy Periodically
A home insurance policy term is a significant period, and you should make sure that your policy is renewed for a sufficient period. The insurance company usually renews your policy for a fixed term, which the company will set. You should make sure that you take out the cover from the insurance company for an extended period. When you are taking out cover for your home, it is important to ensure that there are no gaps in coverage because this will increase your chance of getting damaged or a claim being refuted in case of an accident.
When renewing a home insurance policy, you should consider:
The Terms of the New Contract
The insurance company may have changed their terms, or the policy period of your policy may have been increased. You should understand the new terms and conditions before renewing your contract.
The insurance company will have a deductible amount with every claim you submit. Such deductibles can be used to increase your chances of getting a claim. The insurance company sets the deductible amount, which will be based on the type of cover you have. The higher the deductible amount, the higher is your chance of getting a claim.
Clauses That May Limit Coverage
Some insurance companies have clauses that will restrict your coverage in case of certain events. This may include events such as natural disasters, fires, and earthquakes. Therefore, reading the insurance contract terms is important before signing it. If there are any unclear terms, inquire on the meaning and its impact on the contract.
When you take out cover for your home, it will be essential to keep all the documentation related to your claim. When you submit a claim, the insurance company will ask you to provide all the documents related to your claim. You should keep all the original documents because these will help you in case of a dispute.
Take pictures and videos before starting the cleaning process. These will also serve as important documents in case of a dispute. You do not want to miss any details during the insurance claim process. In most cases, the insurer will send an investigator to find the cause of the damage. The investigators also check if the cause of the damage was genuine or intentional.
4. Inspect the Damaged Property
After you have submitted the claim and the insurer has accepted it, they will send an inspector to inspect your home. They will also take photographs of your property.
This is important because it will help you prepare for the insurance claim process. Once the claim process begins, you may need to make some repairs or undertake some work on your property before the insurer can pay you compensation. Alternatively, you may need to hire a contractor to do some repairs on your property.
When the insurer has accepted your claim and has received the inspector’s report, you will need to hire a contractor to undertake necessary repairs or renovations. However, it would be best if you did not let the contractor take complete control of your property. You should only allow them access when they are working on specific areas. For example, if the wall is damaged and needs repair, only allow them access in that area.
The insurer will pay for any work done by the contractor after you have agreed to it. If the damage is irreparable, the insurer ought to replace your property by either building another home or giving you money worth your home’s value.
5. Get a Breakdown of Your Claim
The insurer will give you a breakdown of your claim as soon as possible after accepting it. This is usually done within three weeks from when they have received all the relevant information from you and the investigator.
The cost of a claim depends on the property’s value and its condition. You should get an independent quote for repairs before you fix anything yourself. This way, you can ensure that what you are doing is covered by your insurance policy.
However, if your property was damaged and too costly to repair, your insurer may decide to pay you compensation anyway. You should note that any money paid out will be deducted from any compensation for other damage to your property or any money you have already received.
The insurer will pay for any repairs that you can show that you have done yourself. Home insurance in Arizona and US States will pay for any costs of hiring a contractor and paying them while they are doing the work. They will also pay to repair any other damage, such as flooding or vandalism caused by the fire.
The amount of money your insurer pays depends on how much your property is worth and how badly it was damaged during the fire. Additionally, it depends on whether you have got other insurance cover to help with the cost of repairing your property.
You should follow the above-outlined steps if you want to maximize your home insurance policy in case an unforeseeable covered risk has occurred.