If you have fulfilled your life-long dream of finally owning your own home in the UK then one mistake whilst insuring your heavenly abode in the UK is to under insure or not fully understand the policy you purchase. You might not only be witness to your home being destroyed in a natural calamity such as a storm or fire but could also find your claim being rejected due to misreading the fine print or forgetting to include specific cover in your policy.
While insuring a home, most people make the basic mistake of undervaluing their homes in a bid to save on premiums. If you too make the same mistake then this move could force you to go in for a smaller home in case your original home is destroyed beyond repair as the funds would simply be insufficient to find or build the same home at current market prices. You should first calculate the current market rate of your home as well as foresee higher property rates in the future to arrive at the right rate of your home.
Another pitfall to avoid is opting for the old-for-old scheme while insuring the contents of your home, again in a bid to save on insurance premiums. In such a case if your 10 year old TV burns down to the ground then its value would anyway have sunk so low that you might not be able to afford a transistor radio for the money you receive against your claim. You should only opt for the new-for-old cover even if you need to pay more premiums. If you forget to include new items that you purchase after signing your policy then that could also turn out to be a costly mistake.
Rushing in to sign the cheapest policy too could land you in deep trouble in the future. Instead of only focusing on cheap premiums, you should make sure that you stick to an insuring company with a good record of paying their claims. You just might find yourself fighting with your insuring company after losing your home or its contents simply because you ended up buying your policy from the human equivalent of a leech that has simply sucked your premiums away.
If you concentrate on reading only about inclusions in your home insuring policy you just might find yourself in neck-deep flood water with your policy in your hand if you forget to read about the exclusions in that policy. You should make it a point to read about exclusions in your proposed policy as well as squint hard enough to read the fine print since your insuring company could be banking on these factors to bail them out of a tricky situation.
Another pitfall to avoid is getting swayed by a sweet talkinghome insurance agent or salesperson. You might end up paying a lot of premium for unwanted cover or could miss out on some vital cover. You should make it a point to call for 3 or 4 quotes to study the various types of covers available in the market. You should also try to get building and contents cover from a single insurance provider since this would reduce confusion while filing for a claim that involves damage to your building as well as its contents.
There are several pitfalls that await the unwary home owner after the purchase of a home insurance policy. The trick is to avoid such pitfalls and sign a policy that offers perfect cover as well as prompt passing of claims in case of any untoward calamity.
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