Your house is probably your most expensive asset and you need to treat it that way.
Make sure that you insure your home against natural disasters to ensure that it is covered together with its contents.
While you cannot avoid Mother Nature’s wrath, you can take some steps to mitigate the damages that you will suffer.
Here are several things that you should consider when buying home insurance:
Insure the Cost of the Structure
Even if your property is worth more than 300,000 dollars, you do not need such a big cover. Your home insurance should only cover the cost of damage repair and rebuilding, not the market price of the property. Make sure that you estimate the cost of rebuilding depending on the quality of construction.
It would be more beneficial to choose a multi-year policy that offers attractive discounts as well as peace of mind. Just remember that the cost of rebuilding keeps going up and you should review your home insurance coverage every few years.
Cover the Contents
Other than the cost of construction, you also need to cover your belongings against damage. Failure to insure the contents of your home can prove costly in the end because you will have to replace them. Other than damage from natural disasters, your belongings also face the risk of theft. For this reason, it is imperative that you consider your belongings when looking for home insurance.
Your best bet would be to look for a package deal. If you take a comprehensive home insurance policy, some insurers might be willing to offer additional covers. You can opt for the personal accident cover because it provides compensation if you sustain injuries that result in temporary or permanent damage in an accident. If the accident results in death, your nominee will get a lump sum amount as compensation.
Other than basic protection, some insurance companies might be willing to offer additional coverage such as covering the cost of living in rented houses while yours is undergoing repairs. If you live in a rented home, you will be protected from the loss of rent in case a natural calamity makes it unfit for occupation. However, this type of cover will only provide coverage for a limited period of about 12 months after the disaster.
Where man-made threats are concerned, the main ones are riots and terrorism. You can also cover damage from such threats under your home insurance.
How to Make a Claim
After the natural disaster occurs, you need to let the insurance agent know about any damages that you have suffered. A surveyor will start estimating the damage to figure out how much loss you have sustained. Because it will be harder to list everything that you have lost after losing it, you need to write down an inventory of your belongings ahead of time and keep it in a safe place.
Making this list beforehand will make it easier for the surveyor and policyholder. Getting home insurance allows you to protect your home at a low cost. Moreover, the benefits of insuring your home far outweigh the costs. If your insurer refuses to pay, you will need the help of a lawyer.
A good lawyer, such as the ones who were representing victims of the North Bay wildfires, will get you a good settlement to cover your losses.
As much as you cannot control natural disasters, you need to make sure that you insure your home and belongings. If you fail to do so, you will end up paying for losses out of your own pocket, which can be very costly.