10 Things to consider when purchasing a Property Insurance
Purchasing a piece of property has been and still remains one of the most important investments for many people. A person will consider a lot of factors before venturing into the business of owning a property. If is for this reason that a person must also consider taking the best insurance policy that they can identify. Here are some factors that a person should consider when purchasing a property insurance cover:
Maybe the first thing a person should consider is the timing of taking up such a cover. Insurance covers after a tragedy will be more expensive. After instances of floods, theft or even terrorist acts the policy prices will be pushed up.
A person should always consider the credit rating that they have. The lower the credit rating, the higher the price of the policy. This is because the insurance company will see such a person as a risky venture for them. They might default.
A person should check how they make claims and how often. A person who claims very often will definitely be given a wide berth by the insurers. No company will want a ‘claimer’ in their books.
A person should open their eyes completely especially when they are offered the so called ‘cheap’ insurance covers. If a person takes a cover blindly because it is cheap, they might discover later that the exclusions are so many that they cover they have is worthless.
Many people have not considered combining their insurance covers. If with two cars and a house, then a person can insure all of them under one cover which will be much cheaper than insuring them individually.
There is the panic or the uneasiness that some people get when they buy something. They switch from one policy to another in record time. This serves as a warning to the insurance company that such a person is as good a liability as a bad debtor.
A home owner or any other property owner should frequently be checking on the review of the insurance policies and property prices every three years. Usually property prices are reviewed after three years. A person should take time to get the best policy.
If there is not much risk of anything happening to the property, a person can opt to have a policy that has more deductibles and lower premiums.
There is the obvious factor of where the property is located. If the property is located in an area where bush fires are an everyday occurrence then the insurance on such property will be expensive. A person should therefore look at the location where they are securing their property.
One must not overlook the fact that the higher the price of a property the higher the premiums. While the price of some property might be higher, a person must not forget that the insurance companies are focusing on the risk, cost of the house and other factors. It should not therefore come as a big surprise seeing that some low cost properties attract more premiums.
Carlita graduated her MBA and has long experience working in a big local insurance company where she was an expert in the types of property Insurance (as she says in Danish bolig forsikring) and thinks it is good to share her knowledge and skills with the others. She is writing technology, finance and business related articles when she has free time. She also has deep interest in traveling and exploring the world. Carlita is also passionate about cars