Property Insurance And Avoiding Personal Property Pitfalls
You simply cannot do without Property Insurance whether you are a homeowner or a business-owner or own some other assets (property). Property Insurance provides coverage for a building or other similar structures as well as for the contents against possible pitfalls and risks. As a Property Insurance policyholder, you will need to pay a certain amount of money in the form of premium to the company; the Insurance provider, in turn, agrees to provide liability coverage to the policyholder for some specific damages and losses (enlisted in the policy). Hence, buying Property Insurance is a great way of avoiding personal property pitfalls.
The coverage offered by Property Insurance policies can easily be molded according to the needs of property owners. In some cases, Property Insurance may even provide crime coverage, glass coverage and more.
Types of Property Insurance policies
Homeowners' Property Insurance: A Homeowners' property insurance policy protects the homeowner from damages caused to his/her residence by disasters. The Insurance covers the house, the garage, the swimming pool and other structures on the property. The coverage also extends to personal possessions inside the house. The policy provides coverage against both man-made and natural disasters. Earthquake and flood damages are among the major policy exclusions and you need to purchase them separately. (You also need to look for other exclusions).
Homeowner's property insurance policy has an additional rider known as "Loss of Use"; the provision provides that the policyholder be reimbursed for the extra cost of putting up elsewhere while his/her own house is undergoing restoration following a disaster.
The policy also promises liability coverage to homeowners against property damage, injury or death of a tenant or a visitor to the property.
Rental Property Insurance: The Rental Property Insurance policy too offers risk coverage to the property owner for the actual house structure and its contents; however, in this case the coverage is provided for damages or losses stemming from the tenants' negligence.
Liability coverage is more important in the case of rental property. Remember, the property owner is held financially liable for accidental damages, injury, or death of the tenants or of their guests, of service vendors or anyone else on their property in spite of not having the least control.
A well-planned Rental Insurance policy can protect a rental property owner from losses like fire damages and burglary, vandalism, and even against personal injury. As a property owner, you should also consider flood and earthquake coverage separately.
Home Contents' Insurance : Valuables like antiques, your jewelry or even your latest technological gadgets and other such personal property, which cost you several thousand dollars and more need to be insured independently with a Home Contents Insurance. The Home Contents Insurance provides coverage for your valuables in the event of either a burglary or damage.
You may also consider other policies like the Umbrella Insurance, Fire Insurance, etc. for avoiding personal property pitfalls but not before verifying that the above policies will not suffice. Thus, if your homeowners' property insurance policy provides $300,000 in liability protection on up to five rental units you will not need any additional fire coverage for your rental property unless you have more rental units. Contrarily, a standard fire insurance policy on rental properties does not offer adequate liability coverage.
Striking an advantageous deal Personal Property Insurance policies vary widely in coverage for pitfalls and you will need to analyze the policies thoroughly before agreeing to accept one. One such important consideration is whether the policy covers assets at their present costs or at the cost you had bought them for.
If you are not capable of detailed analysis, it is better to hire the services of a reliable Insurance agent. The agent with his extensive knowledge in the field will help you choose the ideal coverage for your house, property and other assets. As regards cost of the policy, your agent will ensure that you get the best quote as well as matching customer service. If you choose to carry on all the researching on your own, you will have to shop around, comparing policies.
Avoiding personal property pitfalls need not cost you the Earth, more so if you try to abide by the following guidelines:
- As always, buying various insurance policies (Auto, Home, Life, etc.) from the same provider makes you eligible for special discounts.
- Improve the safety of your home by installing safety devices like fire extinguishers, security system, smoke detectors, et al and you will be able to lessen your insurance premiums significantly.
- Raising your initial deductible is another effective way of lowering your monthly premiums.
Update your Property Insurance policyProperty Insurance surely helps you in avoiding personal property pitfalls but then you need to keep it updated. Failing to get your policy updated has a serious implication, in case your house/property is damaged/destroyed in any mishap, you will be receiving only the sum the property was purchased for, despite the fact that the house has appreciated (in value) construction-costs to replace a destroyed home have gone up considerably.
Thus, you should assess your property insurance needs once every year. By doing this, you will not only be avoiding personal property pitfalls but may also chance upon some cheaper insurance option or discount.-------------------------------------------------------------------------------------------------------If you are a business owner get listed at Best Insurance Site, part of Localwin Network.