Every year when the renewal or extension of the notification letter that came in the mail about home contents and buildings insurance. As is generally what we know and do is to most of us without a second thought will sign the form and send it back to the insurance company. We already know how much of a premium to be charged. Huge financial mistake and here are 4 reasons why:
Are You Buying Something New In The Year Yesterday?
If you buy something new in the past year, such as 3D television or chair massage for the value of the new purchase will not be included in the renewal notice you send to the insurance company. Similarly, if you sell something of value last year and have not notified the insurance company, then you will pay for insurance for the items you do not currently have anymore. In other words, you do not pay the right amount for insurance premiums.
Is Fixed Cost the Same?
If you have Property Insurance Building And then you insure your personal property replacement cost could buy the same thing and new. On the other hand part of the Building and Property Insurance should cover the cost of labor and materials. Now ask yourself, if the cost of replacing the ornaments in your living room remains the same as last year at this time?
Is The Value Of Your Home Stay the Same?
Similar to above, with home building insurance, you need to ask yourself if your home's value remains the same as last year at this time? You need to ask yourself this question even if you do not do the addition part of the home, such as building additional space that naturally adds value to your home.
Is Your Home Safer Now?
The next question is whether you are doing something to the house for the last year which makes the condition of your home would be considered safer today than last year? For example, if you add additional safety locks for doors or windows? If so then there is a very good chance to have the insurance premiums down for safety in your home is a major consideration in assessing premiums (along with the crime rate in your neighborhood, so you may also need to check and see if this crime has gone up or down as well).
Keep in mind that time stops for no one. Thus, you need to read the contents of the insurance renewal with great care to ensure that they reflect or accurately as possible about the current state of your life and not last year.
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