Insurance is simply a futuristic financial investment plan whereby one transfers his home, auto, life, health or business risk to an insurer and in turn pays monthly or annually an agreed amount professionally referred to as a "premium" to the insurance company.
Out of the pool of premiums paid by the insured, the insurer pays compensation to the insured when he suffers loss, damage, accident, or pays to his beneficiaries when he dies.
Being a financial investment, you must be careful where you invest and to whom you entrust your investment on.
Therefore, you must over look cheap cost and be sure your money is in good hands.
Yes, it is good to save, especially when money is not easy to come by.
So every hard earned dollar must be invested wisely to yield maximum returns, value and satisfaction.
While we save, we should be mindful of the steps we take in order not to be at the receiving end at last.
Try as much as possible to know the reputation of the company you are dealing with.
Investigate their financial base and past response to customer claims.
The truth is, not all companies are true to their words.
Many are just interested to cut you a deal, but when the responsibility of the deal comes up, shy away.
This can be an unpleasant experience you must avoid.
When you are satisfied with their reputation, before you endorse any document, study and scrutinize your policy contract, to ensure you understand all that is contained in it.
Endeavor to ask questions on areas you don't quite comprehend.
It is for your own good and for the security of your money.
Get a local contractor to value the rebuilding cost of your house to ascertain the replacement cost on event of total damage.
Take inventory of your belongings while insuring to enable you ascertain any item that is lost while making claims.
Insure your home only; don't include the land, for this will shoot up your rate.
Don't lower your coverage, to be on the safe side.
A complete coverage is advised.
Be informed that your homeowners insurance does not cover for flood.
For this, you need a flood insurance to be fully covered.
Your home policy does not cover for your personal medical bills, but takes care of injuries sustained by visitors to your residence.
You must also be informed of the various kinds of policies available.
The basic homeowners insurance covers for 11 listed perils, and a broad form policy for 17 listed perils.
The coverage is the extent of risk transfer to the insurance provider.
Lowering it places you in a more precarious situation, as no one can predict the hazard that may befall one.
So you don't take the risk, do a comprehensive coverage to remain sane and safe.
Information is of the essence, if you are to be satisfied with your policy.
Therefore, request for your free online quote and get professional advice.