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How to choose the best home insurance

Buying a new house or a new apartment is a dream come true, and we know that behind this great achievement there is a lot of work and commitment. That’s why it’s natural to feel protective instincts and a little fear when imagining what would happen if one day you lost everything.

No one is safe from any kind of loss, so it’s best to be prepared for anything. A great alternative is a home insurance policy that covers not only the structure of the house, but also the items inside.

The best strategy is, without a doubt, to compare the different options on the market, quoting at least three of the insurers you know best or those most recommended by industry experts or friends and family.

Three simple pieces of information are enough to obtain a home insurance quote:

  1. Property value:

Keep in mind that this is not the market value, but the reconstruction cost of the property. This is important because the commercial price may be much higher, and the insurer would not cover this value in the event of an accident affecting the entire structure, so you would pay a very high premium for what you would actually receive in the event of a loss.

  1. Value of contents:

In this case, the cost is calculated slightly differently because it is based on the repurchase price of the items you own in your home, including appliances, furniture, clothing and some technology items such as your computer. However, coverage for these items is highly dependent on the insurer and the plan it offers.

  1. Basic information about the property:

All appraisers will ask you for basic information about the property, such as whether it is a family home or your residence and the exact address of the property.

Things to remember

There are a few things to keep in mind when you are ready to calculate and take out home insurance:

The annual premium, or annual cost of insurance, varies depending on the plan offered. The higher the coverage, the higher the amount, but many insurers offer monthly payments. Also, the final amounts depend a lot on your insurance profile.

Don’t forget that, over time, the number of items, furniture and appliances in your home is likely to increase or improve, which means that each year you will need to recheck how much it would cost to replace them. This way, you will have a policy that perfectly suits your needs.

There are many plans that offer additional home assistance services. You can check if you really need them and if you will use them, as they are small amounts that you can save each year.

If you pay rent, it is important to check all options with your insurer, who may offer policies that only cover possessions.

It is important to read the exceptions in detail before choosing a particular policy to avoid running into any of them when claiming.

Finally, to save a little more on insurance costs, check that the items to be covered are really the ones you consider important, as trying to insure all furniture can increase the insurance premium considerably.