Building Insurance: The Basics

2007-03-08 10:33:40

( Insurance )



Home building insurance, like any other type of insurance available in the market today, is legally binding. It is a contract between yourself and your insurance carrier. Before you sign the contract, make sure you understand what it says. Go through the buildings insurance quotes and make sure you are aware of your type of coverage and the risks involved. If the language in your building insurance policy is unclear, it is advisable that you ask your agent for clarification.

Your premiums for building insurance will vary on a lot of things. Building construction is one factor. The more stable the construction, the lower the insurance risk will be for your building. Some insurance carriers will even lower your premiums if you have installed an alarm system in your home or building. Location is also one of the biggest factors. If your postal code is seen by your carrier as high-risk, it will affect the premiums that you have to pay.

You should check the coverage you will be entitled to once you get your building insurance. Expensive building insurance policies mean more comprehensive coverage. However, you do not need to purchase the most comprehensive policy being offered by your carrier, you just need to know what coverage you need.

Most insurers cover replacement and repairs of property, damage to due earthquake, explosions, fire or smoke. Building insurance policies also cover damages due to lightning and thunderbolts. It also covers theft, vandalism and damage due to bursts and leaks. Building owners also get protection from public liability, demolition, renovation and terrorism at a higher cost.

Coverage for these types of incidents may vary per insurer. So when you get building insurance, make sure you have adequate coverage. You have to confirm that you are neither under-insured nor over-insured as both cases will cost you a lot of money.


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