Insurance can seem like such a grown up thing to get. As children still living in the family home, we don’t really even think about it; if something happens to your favorite toy, we can be fairly confident that mom and dad will kindly replace it, even though we might need to mow the lawn for the next month or so. But then we grow up, we get our own homes and start our own families, and insurance becomes mandatory for a sense of security; both for our families and ourselves. It can be a huge financial burden to have to replace or repair property that is lost, stolen or damaged, and the right kind of insurance certainly relieves this burden. Is this basic idea enough, or should we be looking for more from our home insurance?
Can You Afford To Replace?
Look around your home and take stock of all the possessions you’ve acquired. It’s dismissive to say that they’re “only” possessions. You’ve worked hard for them, and you should be able to enjoy them. Would you really be able to afford to replace them if the worst was to happen? If perhaps just one or two items went missing in a robbery, then maybe, but what about if there was a fire or natural disaster and you lost everything? Very few of us could afford to replace absolutely everything in an occurrence like this. Make sure you carefully read the fine print on your homeowners insurance policy- you might find a few unpleasant truths, like a not being covered for certain natural disasters if your part of the country are particularly prone to them. Also make sure that your policy covers “new for old,” and that any loss or damage to your possessions means that anything old is replaced by something new (as in you’re not liable for the cash depreciation of your things).
When Nature Strikes…
In the event of a natural disaster, many people find themselves homeless. Of course, we don’t expect anything like this to happen to our family or us, but if you watch similar events on the news – well, those people didn’t expect it to happen to them either. Make sure that your home insurance covers accommodation costs if your home is destroyed or severely damaged to the point where it’s uninhabitable (and make sure you agree with your insurance providers definition of uninhabitable) – visit their website for more details, and take your time researching the issue! If the worst happens, money is bound to be tight until you get back on your feet, and you certainly shouldn’t have to pay for long-term motel accommodation or a rental home.
Prevention (And How To Save Money)
Prevention is the best cure, and the same applies to our home. Make sure that you’ve installed smoke alarms throughout your home (and remember to regularly change the battery!) as this can actually lead to reductions in the cost of your home insurance. It also provides you with an additional form of insurance, so should your home be affected by fire, then at least you know you did all you could. Additional discounts can be obtained if you install and maintain a burglar alarm.