5 Common Mistakes Often Made When Buying Housing Insurance

5 Common Mistakes Often Made When Buying Housing Insurance
5 Common Mistakes Often Made When Buying Housing Insurance

Megasports4u.com – Housing insurance is one of the important insurance products to be owned by every homeowner.

Housing insurance can provide financial protection in the event of damage, fire, theft, or natural disasters that happen to your home.

However, not everyone knows how to buy the right housing insurance and according to their needs. Here are five common mistakes that are often made when buying housing insurance and how to avoid them.

1. Do not compare insurance products from different providers.

Many people directly buy housing insurance from banks or developers without doing research first. In fact, there are many choices of housing insurance products on the market with a variety of different features, benefits, premiums, and claims.

You should compare insurance products from different providers to get the best one and fit your budget. You can use online insurance comparison sites to facilitate this process.

2. Not knowing the appropriate amount of coverage.

The sum insured is the maximum amount that will be paid by the insurance company in the event of a claim. The insured value should reflect the current market value of your home, including the cost of building, renovating, and furnishing. If the coverage value is too low, you will be underinsured, which is a condition in which the amount of the claim is insufficient to recover your losses.

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If the coverage value is too high, you will pay more expensive premiums without additional benefits. You will have to reassess the value of the coverage every year or every time there are changes to your home.

3. Not reading the insurance policy carefully.

An insurance policy is a legal document that regulates your rights and obligations as a policyholder and the insurance company as an insurer. Insurance policies also contain important information such as coverage coverage, exclusions, limitations, terms and Conditions, claim procedures, and others.

You should read the insurance policy carefully before signing it and make sure that you understand all of its contents. If anything is unclear or contradicts the original agreement, you should immediately contact your agent or insurance company for clarification.

4. Do not report any changes to your home to the insurance company.

If you make changes to your home, such as adding rooms, replacing the roof, or installing a security system, you must report them to the insurance company. These changes may affect the value of your coverage, premiums, or coverage. If you don’t report it, you could lose your claim rights or get a lower claim than you should.

5. Not filing a claim according to the procedure.

If something happens that causes damage to your home, you must immediately file a claim with the insurance company according to the established procedure. You must report the incident within a maximum of 72 hours or according to the terms of the policy.

You must also include supporting documents such as a certificate from the authorities, photographs of the damage, a note on the purchase of damaged goods, and others. If you do not file a claim according to the procedure, your claim may be rejected or delayed by the insurance company.

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These are five common mistakes that are often made when buying housing insurance and how to avoid them. By avoiding these mistakes, you can get the right housing insurance that suits your needs.

Good luck!

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