What NOT To Do When Buying Insurance
Updated: Dec 6, 2021
Nobody said buying home insurance was going to be easy. It is not about not having options because there are more than a handful of insurance companies in Canada that offer home insurance programs. Rather, it is about having too many options that choosing just one makes it quite a challenge.
Whether you are a first-time buyer or an experienced buyer of home insurance, here are some of the things you shouldn’t do:
Fail to do your Research.
Educating yourself of the coverage that you need should help make the process of choosing a little bit easier. Insurance policies may seem like they are one and the same, but insurance companies use a variety of factors when assessing the risks of a potential client. Some companies may offer a home insurance whose premium is higher than the last one you asked about, but it doesn’t mean their program isn’t good. It is imperative that you do your share of research concerning home insurance policies, the monthly premium as well as the factors that come into play.
Fail to Choose the Right Coverage.
How do you know that the coverage you signed up for is enough? You will have to remind yourself what home insurance is about. Do not confuse the repair cost with the replacement cost of your property. Remember that you shouldn’t underestimate to save on monthly costs or overestimate to get more than what you need. If you’re not sure about how to make an estimate of how much coverage you need, it is best to consult an insurance advisor. They can give insight to your concerns to make choosing easier.
Neglecting to Keep the Policy Updated.
Over the term of the policy, a lot of changes may happen to your home. Whether you extend your home to accommodate a new member of the family or adding that pool as a gift to the kids, you have to keep your policy updated. Neglecting to do so will put these extensions as well as the rest of the house at risk. If you fail to update your policy, the additional parts of your home or the upgrade you made in its structure will not be included in the coverage.
First-time buyers of home insurance can make a lot of mistakes. Some may end up buying home insurance that falls less than what they really need as a coverage. Others don’t know much about the policy that they bought including the standard list of what is included in its coverage. These mistakes may seem simple now but they could mean higher cost in the long run.