When it is the consumer’s first time to purchase home insurance, there are a lot of important things that these individuals pay no attention to. Because of that, a few insurance companies tend to take advantage of the situation. To avoid falling for their trap, take note of the facts and other basic information I will provide below.
The most vital thing you should do is read your policy thoroughly. Most homeowner policies discuss two different things; actual cash value and replacement value. The actual cash value usually has a lower premium attached to it and that’s because it will only pay for the cash value of your property. The problem with that is, things decrease in value as soon as you purchase them. That means you will not really get the sufficient fund to replace it. On the other hand, the replacement value policies cover the cost to actually replace an item and because of this, this type of policy will definitely cost you more. The best solution to make the entire process of choosing between the two is by contacting your insurance agent. Make sure you inquire about the policy limits and coverage before you decide on which policy to go for.
Lastly, you should make a complete inventory of your possessions. Create a written list of every item you own including serial numbers and descriptions and then you create videos of everything you own. That way, you’ll have a proof of really owning a specific item in case you need to make a claim