People make mistakes when it comes to buying insurance coverage, and fire insurance policy in this respect is not left out. You must not forget that every form of insurance has to do with money payments and unpleasant eventualities, so you can’t afford to make any mistakes or you might lose your investments and also lose out when eventualities occur.
Given the fact that insurance policies change, companies add more coverage, costs of premiums increase, and coverage get excluded or repealed, you can’t afford to make any mistakes or even stay uninformed. Here then are top 10 mistakes people often make with fire insurance coverage purchase:
1. Assuming that a fire insurance policy covers a building and the property within it. It does not. Read the fine print properly to be certain that the policy covers the building alone, the personal property, business stocks, or equipment alone, or everything together.
2. Assuming that the fire insurance policy covers for replacement of personal property, it may not. Some fire insurance covers for providing you with complete replacement of damaged property, but some will only cover for repairs, or just cover for the financial value at the time of the incident.
3. Certain losses resulting from the fire incident may not be covered under your own policy, so be sure to ask your agent. Some of such situations are riots or civil crisis, theft or burglary during or after the fire incident, fire or explosion resulting from an earthquake or natural event.
4. Settling for the first agent that offers you a fire insurance policy, is a mistake. You must be able to shop wide and compare various prices and insurance cover.
5. Not checking the reputation and background of the insurance company you want to insure with. You must check their claims record, and their complaint record, and how long they have been in business.
6. Not taking advantage of discounts that come from group insurance. For instance, some insurance companies would offer you discounts because you insure your cars and business with them, together with fire insurance.
7. Not making a complete inventory of your personal property should in case a fire happens and you need to file a claim.
8. Not using smoke detectors, fire extinguishers, and other alarm systems in your home or property building.
9. Not paying your premiums consistently after you have taken out the policy. Remember you are only covered when your premium is paid, and not covered when you owe premiums.
10. Not taking enough large deductibles in order to qualify for a discount. Remember the higher your deductibles, the higher your discounts.