Narrowing down the options
Posted on 05. Nov, 2010 by admin in Personal Finance
Getting insurance is never easy, but some are easier than others. For example, when getting car insurance there is not that much to choose from – not when compared to other kinds of insurance. Unless your car is a top end, a classic or a sports car, you will probably only need the most basic coverage. For instance, you won’t really need to have your car’s paintjob insured if your car won’t lose much value for if the painting is slightly scratched. And unless you don’t happen to own a garage, you’ll probably not need to have an extensive anti-theft insurance in place.
Home insurance goes a little bit by the same tune. Unless you’re living somewhere that’s very prone to natural disasters, you won’t need full coverage. We’ve all seen the jokes of people going around selling “volcano insurance” to people who don’t live anywhere near one, and the principle is just about the same. On the other hand, if you live in an area where it, let’s say, rains a lot, than you might consider upping your water damage fees – same thing applies to any other natural occurrence that may be more common in your area.
But when it comes to contents insurance, it gets a bit trickier. Even more so because it is so hard to easily compare contents insurance – you’ll probably have to look at a bunch of different companies, each with their own set of different insurance offers and packages. Probably the best thing to do is to go by price. Once you’ve settled on three to five packages or companies that you feel are within your price range, start really going deep and comparing from then. Make a list of everything in your house, from furniture to appliances, art objects to electronic devices and expensive gadgets. Remember to include your children’s toys and any modifications that you did to your house, such as elaborate lighting systems or bathroom or kitchen hardware that wasn’t included when you first bought the house.
Remember that a lot of things aren’t covered by your run of the mill home insurance, and some won’t even be covered by your contents insurance. Software or a music collection, for example, will often be overlooked as an “unnecessary luxury” by an insurance expert and won’t be refunded, or it will, but only partially. Making sure these treasured possessions are covered may be tricky, but worth it in the end.
