Most people get their home owner insurance when they buy the house, since the price of home insurance is much cheaper than health or auto insurance, they would buy it at the time of property purchase and renew it every year, set and forget pretty much.
In average if we look at the Networth statement of any individual, property wealth makes a big chunk of the pie. It is where majority of our savings are held, in-spite of this, surprisingly large amount of homes are under-covered.
Here’s how you can make sure to have right insurance coverage, pay right premium and protect yourself from large bills of uninsured property damage.
Don’t make small claims
You’d think that when you buy homeowners insurance, you could submit claims for any damages covered under your policy irrespective of the size of claim –small or large.
While you do pay your premium diligently, entitling you for a protection against property loss either big or small, but you need to have long term view of what’s at stake.
Insurance company is obliged to pay claims that are covered by your policy, in long run though smaller claims will cost you lot more.
Most insurance companies provide claim free discount-saving you about 5 to 10 percent discount on the premium, at the least you are at the risk of losing this discount which might add up over years. A claim of few hundred might end up costing you thousands in few years.
Insurance companies always look for opportunity to decrease risk, in reality it might actually cost the company more to process your small claims than the claim amount itself. If you have a series of small claims done then you could potentially be denied a policy renew when it’s due….