It’s warmer weather and the real estate market has never been so hot.
Last March, Saskatchewan saw a record 85% increase in home sales.
When you’ve decided it is time to take the plunge and buy your first home, this is a must-see for you.
What should you watch out for with household contents insurance? It can be a complicated, overwhelming discussion, but it doesn’t have to be.
To make the process and all of your options easier, Westland Insurance provides the following list of topics to consider before meeting a broker:
1. What does a residential building insurance basically cover?
“It destroys your building, its contents and your liability,” says Daniel Newark, insurance advisor at Westland Insurance. “The last part, liability, is your legal protection in the event that you act negligently and someone is injured on your property.
“It covers cases where a passerby can slip and fall and injure himself, such as failing to clear the snow from the sidewalk in front of your house.”
In addition, many policyholders do not know that theft from their vehicle is covered by home insurance and not by car insurance.
2. How are the key interest rates determined?
A long list of factors will determine the level of your insurance premiums.
Insurance companies take into account your place of residence, your previous insurance history and the insurance loss history of your neighborhood.
“The actuaries who calculate the rate study the likelihood, severity, and frequency of damage, and that becomes your premium,” Newark added.
Therefore, direct comparisons with the premium costs of a neighbor or friend can often turn out differently.
3. What are the basic coverage ratios?
The home contents insurance usually begins with the coverage of the “actual cash value”, the market price of an item minus its depreciation, i.
Replacement value coverage gives the policyholder the value of purchasing a new lost item regardless of age.
And the guaranteed replacement cost coverage offers the policyholder full compensation, regardless of the cost.
“The only caveat to guaranteed replacement cost coverage is that a home valuation must be performed every five years to ensure the property is properly insured,” Newark said.
4. What Items Are Excluded From Home Insurance That New Home Buyers Should Look For?
Most insurance policies are broad, but they do not cover cases of deliberate destruction, faulty workmanship, wear and tear, corrosion – in general, anything that occurs over a long period of time.
“Coverage generally kicks in when things happen suddenly or randomly,” Newark explains.
5. What tips are there for new homeowners to lower insurance premiums?
Loan approval is a new tool that enables an insurance provider to lower your premium, Newark says.
“It’s just a way of offering a discount to customers they think are less risky.”
An important protection for the customer is that his premium cannot be increased if it is determined that his creditworthiness is bad.
Monitored fire and theft alarms can also help lower your insurance costs, but the value for money should be discussed with your broker before investing in a potentially costly system that could generate relatively little savings.
Bundling home and auto insurance with your broker can also save you money. Also, look around to make sure your current broker is offering you a competitive price.
If this is your first time home buying or if you want more information on home insurance, visit Westland Insurance at westlandinsurance.ca.
© Copyright Yorkton this week