First time homeowners are sometimes confused by how much insurance they will need and exactly what it covers. Here are some tips to help you choose the best insurance.
What Should Be Covered
The coverage stated on your homeowner’s insurance policy should truthfully reflect the amount that will cover the expense of rebuilding and refurbishing the entire property should you lose it in, say, a fire. The insurance companies tend to use a cost estimator to determine this cost but if you prefer, you can have a builder assess the property and give you an accurate estimate.
Once you have that estimate, people taking out home insurance for 1st timers need to decide which coverage to take. The three main choices are:
1. Extended replacement coverage which involves capping the payout you would receive to about 125% of the entire insured value of the house.
2. Inflation guarantee – also known as guard, this feature will ensure that the insured value of the home stays aligned with the marketplace.
3. Guaranteed replacement cost coverage – with this coverage, the insurance company will bear the cost for rebuilding the home, no matter what the cost is. There are very few companies that offer this option.
Home insurance for 1st timers needs to include some degree of liability insurance – should someone hurt themselves on your property, for example, or a tree from your property falls over into the neighbor’s property and causes damage.
This type of insurance will protect you from the financial uncertainty arising from injury or property damage that may be caused to other people.
You need to have enough liability insurance to ensure your assets won’t be at stake. The coverage on the homeowner’s policy will protect your future paychecks, your stock investments, your retirement accounts and any other equity to your name.
Make sure you discuss all the assets that require protection with your insurer to make sure you get the right level of liability coverage for your circumstances.
Additional Coverage for Valuables
The standard homeowner’s insurance will cover your home and personal belongings including electronics, clothing and furniture, against theft, fires, accidents and disasters. Often the policy will cover precious items like watches and jewelry too. If you only own a small amount of not very valuable jewelry, the basic home insurance for 1st timers may well be good enough. But if there is sentimental value or high value involved, it is worth considering taking out additional coverage.
Home insurance for 1st timers and long-time homeowners will keep your home and possessions safe when you’re not there. It offers an important sense of protection and peace of mind. Before settling on an insurer, make sure you look at recommendations and current customer reviews to ensure your provider is reputable.
If you thought the price of health cover is more than you initially thought it would be, here is a breakdown of how the cost of premiums are determined.
Health care law states that health insurance vendors can bring into play 5 factors when establishing the cost of premiums. The combination of factors is used to determine how much you pay for health insurance. The type of plan you choose, your family size, age, your location and whether you use tobacco are all considered when pricing health insurance premiums. What does not seem to bear relation to price is your gender and health condition.
Does age really matter? Yes, simply because older customers can expect to pay as much as 3 times more than younger customers.
Why would where I live impact the price I pay for health insurance? Health insurance providers take into account any local laws in place, the existence of competitors, as well as the difference in cost of living that depending on where you live. All of these contribute to the price of your plan.
Size of family
This one stands to reason. It is generally expected that premium costs depend on the number of individuals covered. A single person will pay a lesser fee as compared to a married couple with dependents.
Do you use tobacco?
The health dangers attributed to tobacco use makes this factor a significant one. Health insurance vendors can implement an increase up to twice as much on premiums for users of tobacco as compared to those who don’t use the substance.
Choice in health insurance cover
The range in health insurance cover options influences the cost you will pay. Entry level plans with fewer benefits can be purchased at a lower price as compared to the more comprehensive cover offered in higher priced cover option.
The extent to which these factors can impact on the price you pay for health cover can be set by the State in which you reside. Another determinant that may have an impact on pricing is the additional benefits included in the cover by health insurance vendors.
It is recommended that when opting for health cover that you arm yourself with as much information to make the best decision possible without being overwhelmed by too much irrelevant information. Referring to a professional and experienced adviser can eliminate what can be considered a daunting prospect.