Mortgage insurance: Household Insurance

What is household insurance? Once you’ve taken out a mortgage and purchased a home, you need to insure the property and your possessions. Most often the mortgage lender provides you with an insurance package bundled with the mortgage plan. However, this is not always the best option. Most people sign up to a bundled solution since it is easier than having to shop around for an insurance provider. That being said if you take some time to shop around for a separate insurance policy, you may find many cheaper options available to you.

The most important aspect of getting an insurance policy for your home is to make sure that you value possessions accurately. You should never underinsure your possessions. Even old furniture or art you may have will be expensive to replace. Also, ensure that you list out everything you own. Therefore go through each room and catalogue all the items you own and then value them. It is always a good option to hire a professional to do the valuation for you. Since they are in the business they will know the market prices and value your possessions accordingly. Also, if you own any high value items such as paintings, sculptures or antiques, you should get an independent evaluation. When shopping for insurance you should watch out for blanket insurance covers. Although attractive you may end up paying more and receiving less. Therefore spend some time and shop around for a good insurance package, it will be worthwhile in the long run.