Cheaper Home Contents Insurance vs Better, More Expensive Coverage
One of the attractive features of home insurance is that you can tailor it to fit your budget. The premium that you pay is determined solely by the value of the items that you want covered. Many homeowners will elect this option when finances are difficult and just cover the items that they can’t afford to lose.
This is an understandable decision, particularly in these economically difficult times, but it can also be shortsighted and not as cost effective as you might think. Those looking to cut corners and save money are often shocked at what the costs of a break-in or accident in the home add up to. By that time it’s too late to change to a different home insurance coverage, so it’s important to review all of your options before it happens.
No one actually thinks that their home will get broken into but they have enough of a fear of the possibility of it happening that they feel they should get some insurance. One of the options available is a policy called Key Cover Insurance. Key cover is specifically designed for those who fear a break-in as a result of losing or having their keys stolen. It covers the cost of new keys, resetting alarm codes, and even the cost for repairing broken locks if they are forced or damaged in a break-in.
The cost of structural damage to a home in the event of a break-in can add up quickly when you take into account broken windows and doors, damaged cabinets and fixtures, vandalism, and general destruction that is often caused by callous amateur thieves. Since some of this damage will not be covered by contents or key cover insurance, it is recommended that you also carry buildings insurance.
Thefts are not the only event that can result in damage to the structure or contents of your home. Accidents and acts of nature like floods and storms can run up a fairly hefty bill too. Insurance for these occurrences is typically separate from contents or even buildings insurance. Accidental damage coverage can be included but if you live in an area where storms or flooding is common you may need a separate policy to cover them.
Make sure that saving money by just carrying contents insurance doesn’t end up in financial disaster for you due to a break-in, accident, or act of nature. Looking at all of the different options may seem overwhelming but many insurance companies can combine these options for you and come up with an affordable premium. Peace of mind really has no price tag, so don’t leave yourself vulnerable with the wrong home insurance.
