Home Insurance Guide and Tips for First-time Buyers
Do you have questions about home insurance? Read our guide to find the right coverage for you.
The Basics of Home Insurance
For most people, their home is a valuable asset, regardless of how big or small they are, it is critical to ensure that you have adequate protection in place in the event that something goes wrong. Assume a fire breaks out unexpectedly in your kitchen or your window gets smashed during a burglary attempt, the magic of home insurance is that you will not have to pay for any repairs or replacements if the policy covers your type of accident.
Home insurance includes two main things: building and content insurance. Building insurance covers the building’s structure, including the walls, roof, windows, doors, service pipes, gates, flooring, and fixed fixtures such as kitchen cabinets and bathroom suites. On the other hand, content insurance safeguards your personal belongings, such as jewellery, gadgets, electric appliance and many more.
You can purchase buildings and contents insurance separately, but most people go for a bundled policy because it is less costly, and you’ll only have to deal with one insurer if you need to make a claim.
Key Points
- To buy a policy that suits your needs, you must first understand the fundamentals of home insurance.
- Home insurance includes two main things: building and content insurance.
- Different home insurance policy from different providers covers different things, make sure you know what you need.
What Does Home Insurance Cover?
The coverage offered can be different, depending on the specific policy you choose. However, a typical home insurance policy should cover the following things:
Damage to the Structure of Your House
This covers the expense of restoring your home’s foundations if it is damaged due to a covered cause, such as fire, hurricane, or even vandalism.
Personal Belongings
This provides coverage for the cost of replacing or restoring your personal belongings after a covered cause, such as a theft or a fire. Any concern that isn’t classified as an exclusion may normally be covered by an upgraded policy.
Personal Liability
Members of the household are covered by liability insurance for medical expenses and property damage. If your dog bites someone or your child throws a ball through a neighbour’s window, liability coverage might be required. Liability insurance also covers court costs if you’re charged with causing an accident or losing the property.
When Should I Purchase Home Insurance?
It is advised that you start looking for different types of home insurance policy as early as possible, however, not everyone knows the importance of obtaining home insurance ahead of time. Here are a few things why you should always consider getting your home insurance beforehand, completion of closing costs and mortgages could be delayed if you don’t have home insurance in place. You’ll gain a better understanding of the coverage of your needs and budget. Allowing you to make more informed comparisons among different companies.
You also give the insurer more time to “underwrite” your home and assess the required amount of coverage if you shop early. This is especially important if your home has a lot of unique or expensive features, such as rare woodwork or a high-end built-in sound system.
Start looking at different types of home insurance policy as early as possible.
How Much Does Home Insurance Cost?
The cost of a home insurance policy varies significantly depending on the size of your home, the materials used for construction, the location of the property whether it is prone to flooding or not, the number of burglary cases in the area, and several other factors.
In order to succeed in purchasing the best home insurance policy, it is important to plan ahead and learn about the options available. You might put the money you save on insurance premiums toward paying off your mortgage or making home improvements. Before you buy home insurance, talk to a local insurance professional about any possible issues or high costs that you might want to know before purchasing a certain type of home insurance.
To obtain a home insurance quote online; you just need to simply measure the contents inside your buildings and the amount of insurance that you need, and then obtain a quote to determine the cost of your home, usually home insurance has a very large selection ranging from 650 Baht to over 10,000 Baht.
Always take precautions and be smart when filing a claim.
How Do I File a Claim?
You must first file a claim in order to get compensation for a loss due to damages to your property. Many things can be done to make the claims process smoother and more effective. Here are the things to keep in mind before filing for a claim, keep detailed records about important conversations, as well as receipts and photos of where you want to make the claim. Keep a detailed inventory of your home, or use an app or website to keep track of your belongings digitally.
When it’s time to file a claim, make sure you have all the prepared material, as well as other details about your house. Then file as soon as possible. Insurance companies give different amounts of time to report a claim, to ensure that your loss is protected, make sure to file within these time limits. For home insurance, you must report the incident within 30 days of the accident, or else your claim will be rejected. The claim processes are fairly simple, for more information about how to claim property insurance click HERE.
Tips to Cut Cost of Home Insurance
It’s not always a good idea to buy the cheapest coverage because it may not provide adequate protection. There are, however, ways to reduce your insurance premiums while still receiving the protection you require.
Have a Security System
Maintaining a security system, such as a smoke alarm and CO detector, can save you on premiums by 10%. Other security systems, such as CCTV, dead-bolt locks, and sprinkler systems, may also help.
Pay Off Your Mortgage
Those who fully own their property are most likely to see a drop in their premium. This is because the insurer thinks that if you 100% of a place, you will take better care of it.
Raise Your Deductible
The higher the deductible you choose, the lower the annual premiums.
Make Comparisons
Make sure you do comparisons, including checking for group coverage options through employers or association memberships. This way, you can find the cheapest premium that fit your budget.