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Insurance,
protecting your assets in real estate.
Insurance is essential
because with so much money invested in your assets, particularly
a home it would be very poor planning to not protect them.
Life doesn't always go the way we plan it so it
makes sense to have adequate protection, look at as a form of risk management,
primarily used to hedge against the risk of potential financial loss.
In relation to real estate you want
to make sure you are protected with both buildings/structures
are adequately insured, as well as the contents.
Building Insurance
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Discounts are available for
things like.
1. By placing your buildings
and contents insurance with the same insurer you can receive a discount
on your premium.
2. No claims discount - Just
like a motor policy you can receive a discount for a claim free
record.
3. Security - If you have a
house alarm you may be entitled to a discount.
4. Neighbourhood -
Being part of an official Neighbourhood Watch scheme can entitle
you to a further discount.
Insurance, points to consider.
4.
If you are working out the value to insure your building it would
be wise to add 20 per cent to cover temporary accommodation, removal
of debris, and loss of rental income for an investment property.
Contents insurance.
Many people
choose to combine their home and contents insurance as this is often less
expensive than having two separate policies.
There are many types
of house insurance policies that you can choose from and only you
can say which policy is going to suit you best.
It is probably wise
to have the most coverage that you can comfortably afford so in
the event that something happens to your home and property you won't
be left financially wiped out.
Take the time to read the fine
print as there can be exclusions on some policies, and you don't
want to discover that there were details about your insurance policy
that were unclear when you are making a claim.
How
to be a for sale by owner, selling privately, advice for sale by
owners, read more...
For
example on contents insurance policies you may be offered 2 choices
of insurance Indemnity or replacement/reinstatement insurance.
Indemnity is where you are paid
the depreciated value of your home and contents based on the age
and condition of the items.
Replacement/reinstatement pays
out the full cost of rebuilding or replacing the items to an equivalent
standard.
If
you are putting your property on the market read our tips on preparing your house for sale, read more...
Insurance, shop around online.
The great
thing about finding insurance online is that you can easily find the best
deals right from your computer. You can fill out a few different applications
online and see which one has the best offer for you.
When you think you have found
the best offer you can then still phone the other insurance companies
and ask them if they can give you a better rate.
| This demonstration should show
you the power of shopping around which is so much easier thanks
to the internet; the plan is that your insurance premiums will be
a lot less each year, because you shopped around to start with.
As stated at the beginning,
insurance is just another one of the expenses you will have as part
of being a real estate owner, but as you have worked so hard to
obtain your assets, it is worth while to protect them.
If
you are a first time home buyer it can be really scary, first time
home buyers read more....
Good
luck with your real estate insurance.
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