Many people who plan to purchase insurance policies often ask whether they can get better prices. For them, this could be a deciding factor on whether they would purchase the plan. However, we should know that insurance companies want to make money, but they also want to remain competitive, if they want to always stay in the game. Often, we are able to get 10 percent discount across the board. Before we decide to buy an insurance policy, we should know why we buy it. Primarily, we want to cover our assets, such as health, car and property, in the event of decline or loss. Insurance could also protect us against negligent and unintentional actions. When applying for home insurance, we should know things that we need to ask to the insurance provider.
There are many factors that we should consider. As an example, we should know whether the house is located to the fire hydrant. The type of wiring we have in the house could also determine the overall safety, including the use of fuses or circuit breakers. The insurance company may also consider the type of plumbing or heating. The material and age of the roof could determine the structural integrity of our house. There are things that could qualify us for lower premium and they may even have a role in determining whether we are eligible for the insurance policy. If we are approved for the insurance policy, these factors could also determine whether we need to pay higher or lower premiums. So, this is the reason why insurance companies ask specific questions.
The likelihood of losing something important is higher, when we are located in a high-risk area. This is especially true if our house is older or located in disaster-prone locations. The cost of replacement or repair can be quite significant. The insurance company wants to make sure that the overall risks are minimal before they agree to provide coverage. There are also other factors, for example, the insurance company may refuse to provide us with a policy, if we have more than three claims in two years. In this case, the company could consider us as a high-risk individual. So, it’s important for us to limit the number of claims. It may not be necessary to offer claims for smaller damages, especially if the repair or replacement costs are not much higher than the deductibles.
If we have too many claims, we are jeopardizing our future eligibility for getting new insurance policies. We should know that insurance policies are not really means to cover every single loss we have. It is important to define the minimal level of damage before we make a claim. As an example, if the medical costs, repair costs or replacement costs are more three times than the deductibles, we may consider to make a claim. Each person has different concerns, such as water damage into their house or higher risk of diabetes that runs in the family. In this case, each person has their own coverage options.