Tuesday, April 14, 2015

Preventing Financial Loss With Home Insurance Katy TX

By Joanna Walsh

The home is an important place to its owners, and they usually spend a lot of time and money on making it the place that they want to live in, and also invite their friends and relatives to. People take pride in their homes, and invest not only in the physical structure of the house or apartment, but also in the furniture and other assets they require. Of course, there are various threats to the security of the home, and these can be mitigated with home insurance Katy TX.

The most usual risks to the home and its assets are obvious, and can be divided into two types: natural damage, such as by water or fire, and then the human damage or expropriation that occurs through theft, arson or other malicious or negligent activities. But no matter how these troubles come about, the expense of dealing with them is sometimes enormous, and insurance negates this expense.

Insurance policies cover the most usual risks, such as water damage, fire and theft. However, in initiating a policy, the homeowner should understand certain obvious principles that relate to how the insurer assesses these risks and also how the premium is calculated.

One of the most basic of these principles is the direct and proportional relationship between the insured asset's value and the premium. The more your home is worth, the more it'll cost to insure. This sounds obvious, but sometimes people try to reduce their premium through the exclusion of certain high-value yet irreplaceable assets, such as original artworks or inherited jewellery. If the asset cannot be replaced, they assume that it is not worth insuring, and the insurer then excludes it from the policy, thus lowering the premium.

Another factor is the security on the premises. Some policies may actually require certain security features, such as burglar bars or alarm systems. Obviously, the higher the risk of crime, the less enthusiastic the insurer is going to be about approving the policy. This issue is about more than the premium being higher - the insurance firm will simply decline the application.

Speaking of the house or apartment itself, as in the structure, there may also be requirements concerning it. Municipal safety standards need to be met, otherwise the risk to the insurer is too great and they won't insure the premises. Fires and water damage are a common occurrence in residential areas, but where they are the result of negligence or illegal construction activities, the insurer cannot be expected to pay out on the policy, or even issue one at all.

A final point is that an insurance contract is legally regarded as one which requires the utmost honesty, on the side of both parties. The insurance company cannot physically verify every single detail of the property and its contents, or may not try to. This is not an opportunity to manipulate the policy for financial motives. If the homeowner supplies incorrect information, not only is the policy worth nothing, they may even be prosecuted.

As homeowners know, building, acquiring or keeping a home in order is extremely expensive, and takes considerable time. Disasters do happen, and they are costly, so it is a worthwhile exercise to assess what home insurance options are available.

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