The very basics of home insurability: when to make claims for damages cause by disasters
If you’re thinking of buying a home near a fault line, hoping that an insurance premium can save you the trouble of paying for damages, think again. Insurance companies survive today because they’re wise, not because they’re blessed for their efforts to save people from going bankrupt.
The experts were right in saying the purchasing insurance premiums is a gamble. Basically, as an insurance premium holder, you’re fueling a monetary structure that supports people who are in need because of dire and highly unlikely circumstances.
Weighing the predictability of the risk
Let’s go back to the fault line: you might be able to get some semblance of home insurance against earthquakes even if your home lies near the fault line but this will cost you money.
This is because insurance companies don’t actually sell insurance premiums to home owners unless the risk of a disaster is low. If your house sits in the middle of lowlands which receives high levels of precipitation every year, there’s a high possibility that you will not be able to qualify for a flood insurance premium.
Making your home safer and insurance-qualified
Insurance companies are most likely to charge high premiums for homes that are “vulnerable”. To make sure that you pay low insurance premiums, or to make sure that your home is even qualified for a premium, you should lower the risks of damage due to disaster by installing safety equipments around your home.
Fire, for example, is something that’s most likely to happen anywhere in the world. Because of the high probability of household fires that happen globally, fire insurance, especially in houses made of wood, are bound to have big price tags.
To lower the cost of your fire home insurance, you should think about painting your house over with fire proof paint, or building majority of it with materials that are less flammable. Installing a fire sprinkler system in your home can also lower your fire home insurance premium by a mile.
If you’re near flood-prone area, and you really wish you could get some sort of support for possible flood damage in the future, you can look into the possibilities of installing better drainage system around your home instead. Make sure though that you don’t install anything that will make the base of your home sink. A sinking base can only mean one thing: more damage expenses.
While there seems to be no hope left for homes that lie near the fault line, you can ask professionals about “earthquake proofing” your home. As a matter of fact, considering the possibilities of earthquakes and other disasters should be the first thing on your mind when you build a home.
Coverages
Each home insurance policy differs from another. One flood home insurance policy may give a completely different set of compensation compared to one being offered by another insurance company. Whether you’re dealing with banks directly or through insurance brokers, you should always check the fine prints all the time.
Look at how long you will have to wait for your compensation to arrive after making your claim. Also, look at the documentations you will need to accomplish before being able to make your claim. Make sure that you follow all the terms and conditions written on the premium so you can make stress-free claims later on to your insurance company.