For first-time readers of insurance selections, products and advice, it also becomes necessary to explain to them what exactly is meant by an estimate. This is not to suggest that it denigrates from readers’ abilities. Rather, it is a useful acknowledgement that not everyone has had direct experience in business, commerce or finance due to personal circumstances and lifestyle choices and/or careers. Doing that should then make it easier for those readers to understand and appreciate how home insurance estimates should be structured and what should be included therein.
An estimate is generally a reasonable assessment of what a product or service is likely to cost. That means that it is not exactly an exact science if you will. It is not the place of the cost estimator to make accurate forecasts for what might be incurred in the future. That is certainly the case where insurance cover is concerned. And that being said, the set premium cannot hit the nail spot on either. But at least both estimate and premium do achieve the objectives necessary. Estimates and premiums are reasonable in their projects.
If it is professionally managed, you should not be overcharged and you will not and should not be under-insured. As to what should be included on a professionally drawn up home insurance estimate, here are four factors, among others, that you should be considering along with your professional service provider. The general factor will always be the objective of establishing just how much cover you will be needing. One of the most important factors in drawing up the estimate has been mentioned. Ensure that you are working with a professional.
This insurance provider is fully licensed and accredited to be of service to you in terms of good advice and selling an appropriate insurance policy forward to you. A good estimate should be based on the property alone. It should also take into account its contents. It should also include extra coverage to do with injuries and accidents to third parties on your property in the event of an incident. This is normally in the form of liability insurance. The final factor under this note is specific to your home insurance. The estimate needs to take full account of your property’s location, geological area and regional climate.
This is a case of stating the obvious. But such a significant factor, you may be surprised to learn, is often overlooked by those who are collaborating towards cheaper forms of insurance which are grossly under-estimated at best. The obvious ignorance has to do with irresponsibly excluding coverage for earthquakes and floods, among other natural occurrences under the assumption that the area has historically never experienced such calamities. While insurance could be a case of taking a gamble on what may or may not happen in the future, this form of ignorance is a case of reckless abandonment. As underwriters like to say; rather be safe than sorry.