Home insurance is a form of protection against unfavorable situations that could cause any damage to - in this case, the apartment.
The insurance protects the owner of the apartment against unpleasant situations related to unfortunate events, the repair of which may seriously damage the budget or may not be possible at all due to lack of funds. Unfortunately, most of us do not spend enough time to carefully read the insurers' offers and choose the best one.
If you do not pay attention to the detailed provisions of the insurance contract or fail to identify certain issues that affect the amount or the right to compensation at all, these errors may result in a smaller scope of insurance, which is associated then with the lower disbursed amounts paid in terms of compensation for damage - or complete refusal to pay compensation.
To select the most beneficial and appropriate insurance offer, you need to know the 5 most common mistakes when choosing insurance!
MISTAKE NO.1: CHOOSING THE INSURANCE COMPANY ONLY due to the low price of the insurance premium
Nobody wants to overpay for an insurance policy. You must be aware that more important than the low premium price is to choose the right insurance company, whose representative will always be at your disposal, helping you in the event of a damage and paying the compensation due to the Client without any problems. There are a numer of independent rating companies that help check the quality and solvency of individual insurance companies - so it's worth getting acquainted with this opinion before signing a contract. It is also important to request information from trusted people about the insurance companies you are considering - perhaps someone has some experience with individual insurers and will be able to advise you on choosing the best company. Remember that you need an insurer who is reliable, is available to assist you at any time and treats your claims fairly.
MISTAKE NO. 2: INSURING THE HOME FOR ITS MARKET VALUE
The value of your home can fluctuate. As time goes on, the value diminishes, and people opting to select insurance choose to insure their home at market price. This is a big mistake! Your home should be insured for the amount that would be needed to fully rebuild it in the event of damage - and this is rarely equal to market value.
ERROR NO.3: THE BASIC INSURANCE OPTION IS ENOUGH
In no case! The basic insurance package protects only the flat or house as walls, along with other permanent elements. This insurance is provided in relation to random events - force majeure such as flooding, fire, etc.
This option of insurance is most often chosen by people who apply for a mortgage and stumble upon the conditio of the bank, which is property insurance.
This type of security is commonly treated as an unnecessary expense, as its protection is at a minimum level.
MISTAKE NO. 4: We don't need any other protection when we have insurance.
Another mistake. Full property protection should be a priority for any apartment or house owner. And it is nonsense to think that if we have a good insurance option, we do not need any additional security measures such as alarms, security doors, monitoring etc.
Remember that each additional security not only makes the apartment less vulnerable to danger, but also reduces the insurance premium, as a consequence of which we can have a very attractive option of an insurance policy for a not too high amount of premium.
MISTAKE NO. 5: Securing the lease of real estate with the TENANT'S Insurance
In case you live in a rented house or flat, you need to know that the insurance of the owner of the building or flat will not cover losses caused to your property. Therefore it's a good idea to draw up a detailed inventory of your possessions in order to reasonably estimate their value and consider taking out insurance to cover any losses. You will probably find that it is much cheaper than you think. If you purchase insurance that is typical for the tenant, you will also receive liability insurance, so in the event that a pipe breaks in your apartment and floods your neighbour, you do not bear any responsibility.
Probably, if you take the above advice into account, you will be able to make a favorable selection of offers from various insurance companies and choose the one that best suits your needs.
If you have noticed that you have made any of the above mistakes, talk to your insurance agent who will advise you on how to modify your insurance option so that no matter what the circumstances, you can count on compensation to cover the resulting damages.