Is Your Home Sufficiently Insured?

As the saying goes, better safe than sorry; but who wants to insure their house against fire and water damage? How expensive  residential property insurance is depends on the value of the building, the location of the house and how much coverage the insurer requires. After the initial assessment, the insurance company will offer various levels of coverage ranging from a cheap basic protection for damage caused by fire, water and storm, to more comprehensive plans. In North America there are of course a vast number of insurance companies to choose from. What many do not know is that any damage caused by natural events such as floods, earthquakes or heavy snowfall may not be covered by basic insurance. Sadly, although insurance companies will of course provide a very detailed disclosure of terms and conditions; it’s very common that the customer will only lightly scan the paperwork before signing. This can lead to a false sense of safety based on the assumption that coverage is sufficient.

A basic homeowners insurance plan may only cover water damage from something as innocuous as a leaking tap or minor rain intrusion for example. The combination of homeowners' insurance plus extended elemental damage protection is certainly favorable, according to the vast majority of insurance experts. But even here there are differences between the different rates of providers, so homeowners should carefully consider which offer suits them best. Do your homework when arranging insurance cover, it’s too late after the accident happens.