When it comes to our home insurance, it is important to cover all bases. We rank some of the most common missteps to avoid when purchasing home insurance.
1. Underestimating the impact of typhoon.
Not all home insurance policies provide coverage for third party injury, but it is fast becoming essential to homeowners. Rising global temperatures have led to extreme weather changes around the world, which in turn has led to more typhoons in Hong Kong. More falling windows occurred during typhoon and the homeowners will also have liability towards any third party bodily injury or property damage. As such, it is wise to consider insurance plans that include personal liability coverage, such as MSIG’s FamilySurance Plus 4.0.
2. Adjusting home insurance according to real estate value.
Real estate prices fluctuate in the market all the time. Some people reduce insurance on their home to get more savings when the value of their homes drop—but you should refrain from doing so. That is because the price of rebuilding your home remains the same, no matter your real estate value. In the case of an unfortunate disaster, you will likely have to fork out a fortune.
3. Undervaluing your valuables.
Most home insurance plans have limitations for claims regarding your personal possessions found in your home. For example, you may have $10,000 worth of valuables such as jewellery, antiques, or fine art—but the coverage you may have is limited to much less than that. Before purchasing any home insurance, always make a list of all your important home contents, especially those that cost above $1,000. That way, you can check whether your chosen home insurance plan matches the value of both your home and the contents, especially your valuables inside it.
4. Purchasing home insurance based on lower premiums.
While lower premiums can represent savings in the long term, they may not necessarily be the best option. Some insurance policies may have removed certain important aspects such as emergency assistance service, so as to bring down the price of a policy and entice more buyers.
Tip: Identify your insurance needs and priorities before going to any insurer. Doing so will help to keep your needs top-of-mind before the price.