Does the Insurance for Your Household Fall Short?

| August 28, 2013

April 2, 2006 Tornado Outbreak, O'Fallon, Illi...

When it comes to insurance you should remember that you need sufficient cover so that a claim is met without question if any problem does occur. It is all too easy to underestimate the value of your furniture and fittings. Just take a moment to think this through and see if you agree.

Of course you hope that you will never need to make a claim. You should have taken every precaution when it comes to your home. That means not only insurance but also other forms of security including of course the most up to date locks.

Complacency is dangerous. There are people who will always take advantage of an opportunity when it clearly presents itself.

Household insurance is just part of security provision

What is the true cost of replacement?

When it comes to your furniture you may add up what you have spent when furnishing your home and leave it at that. If you have been given some furniture, perhaps by parents, when you first set up home it is easy to forget the value in your calculations.

Similarly, you may have bought some things in a used condition; that may not be an option when it comes to replacement. You have to have enough cover to replace everything with new items.

In time the replacement cost of many of the things you have bought increases. Inflation is a fact of life and you will get no rewards for ignoring it. When you take out insurance for your home and its contents you need to take that into account. If your insurance provider is not advising you on this, it may be time for you to look at another source.

Don’t miss out

You cannot put a value on sentiment. An insurance company cannot give you any compensation for your feelings about possessions that you particularly treasure. However even though compensation financially is never true reward you do not want to lose out completely by not having the proper cover.

You certainly want to divulge the true value of everything and you should identify individually valuable items so that your insurer is aware of their presence. If there are conditions placed on how they are kept secure in your home then follow those conditions.

Personal finance

It is important to take some time over the insurance you take out for your home and take advice from someone with experience who may see some obvious deficiencies in your list and valuations. House and contents insurance cover should be treated as just another element of personal financial protection.

You wouldn’t look to make an investment without seeking professional advice. The same should be true of insurance; getting the best possible advice will save you money in the short to long term. If you do subsequently have to make a claim, you can rest, assured that any claim made will not result in financial loss and/or adjustment.

Household insurance is a must. You should have it in place even before you move into a property and check on the security provision in the home and immediate vicinity. You should think hard about the cost of replacing everything if the worst should happen and continue to review that bearing in mind inflation. Get a good provider and you will receive regular advice and a quality service.

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Category: Home Insurance

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