What Questions Should You Ask of Your Home Content Insurance Company?
Often times many people will not ask the right questions when they are purchasing a home content insurance policy.
This can often lead to frustration and disappointment when the time comes to file a claim for a loss.
Knowing the right questions to ask will often make you a more well informed consumer and also protect your belongings in case of a catastrophic loss claim.
One of the biggest questions people often ask is how much is the policy? While the price of the policy is a concern to many people, the best question you should be asking is "What is covered?".
This is different depending upon what company you choose, however this should be the first question you ask about.
There are many similarities amongst the various insurance companies, but there are also just as many differences as well.
For example, did you know that not all jewelry is automatically covered? Often there is a cap on jewelry, guns and other collectibles coverage.
While the basic amounts are different, are you sure that it will be enough to cover replacement cost in today's dollars for that item? This leads to the next question you should ask.
Finding out if the coverage you are buying is a "New for Old" replacement coverage is key.
Some insurance companies will prorate or decrease the value of an item based on its age.
If your television is 5 years old and you paid $500 for it, they might only give you $100 for it.
You need to make sure that the replacement cost is for a like item in today's dollars and not prorated value based on age.
Finding out and making sure that your coverage will replace an item completely will make the cost of the coverage seem minimal in the case of a loss that you have suffered from a fire, flood or other catastrophy.
This can often lead to frustration and disappointment when the time comes to file a claim for a loss.
Knowing the right questions to ask will often make you a more well informed consumer and also protect your belongings in case of a catastrophic loss claim.
One of the biggest questions people often ask is how much is the policy? While the price of the policy is a concern to many people, the best question you should be asking is "What is covered?".
This is different depending upon what company you choose, however this should be the first question you ask about.
There are many similarities amongst the various insurance companies, but there are also just as many differences as well.
For example, did you know that not all jewelry is automatically covered? Often there is a cap on jewelry, guns and other collectibles coverage.
While the basic amounts are different, are you sure that it will be enough to cover replacement cost in today's dollars for that item? This leads to the next question you should ask.
Finding out if the coverage you are buying is a "New for Old" replacement coverage is key.
Some insurance companies will prorate or decrease the value of an item based on its age.
If your television is 5 years old and you paid $500 for it, they might only give you $100 for it.
You need to make sure that the replacement cost is for a like item in today's dollars and not prorated value based on age.
Finding out and making sure that your coverage will replace an item completely will make the cost of the coverage seem minimal in the case of a loss that you have suffered from a fire, flood or other catastrophy.
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