Buying a House is a major financial investment. A House is to be protected by the insurance coverage to the maximum possible extent. For different types of disasters both natural and manmade there are different products and forms from the insurance company to mitigate the losses.
It must be kept in mind by the home owner that small incidents or damage to the home should not be reported to the insurance company as they will bring up the premium rates and may also lead to cancellation of the policy. Paying out of the pocket is the safe way when the cost is less than the deductible or even a few hundred dollars more as this amount could be less than the increase in the subsequent premiums incurred.
Some of the most important questions that need to be asked by the home owner before buying a home insurance are as follows:
- What is the policy coverage needed for the particular apartment or house?
- Which companies provide this coverage?
- Which policy is to be purchased with minimum premium?
Once a person has bought a Home Insurance he must know how and when to file the claim. He must keep in mind the following points before filing for the claim:
- The Insurance Agent must be notified in writing about the claim.
- A Police Report must be acquired in case of a burglary or if the house has been vandalized.
- The Claim must be made within the specified time limit given by the Insurance Agency.
- Steps must be taken by the Claimant to prevent further damages to the house and if repairs are being made then one must keep the receipts. The receipts may be later produced for reimbursement.
One can also photograph or video tape the damage which can serve as a proof.
- A person who has to move to a different accommodation while the house is being repaired must keep records of all the expenses that is being incurred.
- Once the Insurance Company is notified about the claim, the company sends the necessary claim forms to the person concerned which has to be filled within a specified period of time.
- Finally the claims adjuster is sent to the insurance owners’ house for inspection of the damages. The Claim is then settled according to the prevailing state laws.
An insurance company may not recognize some of the claims which fall under these categories:
- The policy may not be active if the premiums are not paid in time or full.
- Some other insurance company has agreed to pay for the claims.
- If the House is not maintained properly.
- If the house is not covered by the policy as in the case of floods or earth quake.
Insurance Companies generally provides the customer with specific areas where they are eligible for benefits. But in case of accidents caused by negligence the insurance company has the power to deny payments.