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Building your own home is a common
dream for aspiring homeowners, but be
aware that this is a dream that comes with
lots of conditions. It's also easier said
than done, and one of those things that
make building your home a more difficult
goal to achieve is obtaining the
appropriate insurance for it.
Tips for Obtaining Insurance
When Building Your Own House
Credentials and
Qualifications
Do you have the necessary knowledge,
skills, and abilities for the job at hand?
If using a hammer confuses you, it's best
that you leave the homebuilding job to
someone who has the qualifications for it.
Even if you do end up building a perfect
looking home, your lack of expertise and
experience will still make the insurance
company hesitate providing protection for
your home.
If, on the other hand, you've got the
necessary credentials for the job then
furnish it and make sure that they look
pretty. Being a professional carpenter,
engineer, or architect will definitely
help. If you don't have the necessary
license but lots of experience, extract
letters of recommendation and reference
from the people you previously worked with
and for.
The Advantage of
Collaborating
It's good that you want to build your
own home, but keep in mind that you don't
have to build your own home alone and
without any help whatsoever. You can, for
instance, relegate several important
duties to a professional and then just
accomplish what you can accomplish
perfectly. Having blueprints drawn up by a
professional will be something than an
insurance company will appreciate
more.
Use of Materials
You can obtain insurance when building
your own house more easily depending on
your choice of materials. It's best to use
high quality or grade A materials for
building the structure or skeleton of your
house because this will provide more
stability and soundness for your home -
something that sounds music to any
insurance company's ears.
Don't overdo using materials of high
quality, however, because this can be
perceived the other way around. Instead of
lowering your insurance costs, using too
much high quality materials can increase
the costs of insurance if it ends up
becoming a liability or something else to
protect and value.
Location, Location,
Location
It's easier to get insurance when
building your own home if your property is
located in an area where the crime rate is
particularly low. It's easier to get
insurance when building your home if your
property is located in an area where
there's no constant danger of getting your
house swept away by a raging flood, a
terrifying hurricane, or a volcanic
eruption.
Of course, expect your insurance cost
to increase appropriately if you live in
an upscale area - it's expected, after all
- or in any state where insurance costs
are naturally high.
Installing a Security
System
Having an alarm installed or making
sufficient security arrangements for your
home is always something that an insurance
company will welcome. When building your
home, you can actually save more money -
not to mention increase your home's safety
as well - if you incorporate your security
plans in your home building project
instead of installing it after your home's
completed.
Remember, of course, that security is a
broad word, but all its aspects are
important for an insurance company. Thus,
when building your own house, make sure
that you formulate security arrangements
not only against theft and burglary but
also against fire and other natural and
man-made perils.
Other Tips for Obtaining
Insurance When Building Your Own
House
A single-floor house or a bungalow is
always easier to obtain insurance for than
any other house with two or more
stories.
The number of occupants and how they
live may also affect the ease of obtaining
insurance when building your own house.
How the house is managed is also a factor
to consider.
Arrange for an independent insurance
home surveyor to conduct a termite
inspection for your home. If the report is
negative, make sure that you correct this
problem immediately and before you
complete your home.
To end in a positive note, remember
that obtaining insurance is usually the
only negative aspect to consider when
building your own house. As long as you
have more than enough time and effort to
donate, building your own house can
ultimately help you save a lot of
money.
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More
information here about insurance
when building your own
house:
Insurance for Fire Only
In this present age of disasters and unforeseen events occurring, it is important to have a good, quality insurance plan. That is why insurance companies have policies that cover car damage, property, house insurance (fire only, robbery, etc.) personal self, and even life insurance. These insurance plans usually allow the owner to be less worried and concerned about damages to the car, property, or whatever it is he insures, including his own life, since there will be just and proper compensation for damages and/or losses. .......
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07/24/2008
Glossary of Home Insurance Terms
when you apply for your Home Insurance you may encounter some of the following terms. If you are unsure of any term relating to your Home Insurance policy it is better to ask your insurer or broker for help....
All Risks- A wider form of cover than that provided by the standard Contents Section, items can be insured on a specified or unspecified basis and will include accidental loss or damage insurance away from your home.
Average Clause - Insurers insert this clause on your policy as a means of dealing with under insurance. It has the effect of reducing a claim in proportion to the amount of underinsurance.
New For Old - Most policies for Home Insurance are now arranged on a new for old basis. In simple terms your old items are replaced with new items. To secure this cover you will have to insure your contents for there full market value. There are some exceptions where cover is not on a New for Old basis, mainly clothing.
Claim - If you have insurance policy and are unlucky enough to suffer a loss, you will be entitled to make a claim for your financial loss from your insurers, providing that the policy wording covers the cause.
Cancellation Period - The Financial Services Authority require insurers to give you a statutory cooling off period in which you can cancel your policy. It is usually 14 days and most insurers will make a full refund of any insurance premiums collected. After the 14 days period, you are still free to cancel you policy and any rebate will be calculated in accordance with the insurers standard scale, which is usually published in your policy document.
Commission - This is the amount of remuneration paid by the insurer to a broker or intermediary for placing business with them.
Contract Of Insurance - This is agreement between an insurer and your self, in return for you paying a premium; the insurer will pay you compensation or a sum of money on the happening of an insured event.
Days of Grace - These are additional days of cover provided after your policy has ended. The usual amount is 14 days.
Direct Insurer - an insurance company or underwriter that will sell you insurance directly without going through a "middle man" such as a broker or Intermediary.
Endorsement - a policy endorsement alters the scope of your policy wording. It can have two effects, it can extend your cover or it can restrict your cover. It is very important to read all of your policy endorsements so as to fully understand your covers.
Excess this is the amount of money that your will have to contribute towards a claim. Some excesses are compulsory such as subsidence excess; some are voluntary where you can elect to receive a discount in return for paying the first portion of any loss.
Extended Accidental Damage - Most policies will include a certain amount of Accidental Damage cover free of charge. Under Contents Insurance Free Accidental Damage Insurance normally includes TV Videos and Sound reproducing equipment and fixed glass in furniture. Under Buildings Insurance Free Accidental Damage Insurance normally extends to breakage of baths and lavatory pans, bidets etc and fixed glass in windows and doors. Extended Accidental Damage will extend the cover to include all other items.
Fee - Brokers & Intermediaries may place fees on your policy for arranging things for you, any fees charged should be mentioned in your documents.
Indemnity - A very important Insurance principal, the insurer in granting indemnity to a client will seek to place them in the same financial position after the loss as they were in before.
No Claims Bonus - In return for not making claims under your policy, the insurer may reward you with a discount from your premiums. For each year of no claim up to usually a maximum of three or four, the insurers will provide an additional discount.
Peril - Something that happens that could lead to a claim under an insurance policy such as a Fire or Flood etc.
Premium - This is the money that you will have to pay to your insurer in return for your insurance policy, it is sometimes known as consideration.
Proximate Cause - This is the active cause of a loss that sets in motion a train of events that brings about a result without the intervention of any force started and working actively from the new and Independent source. In simple terms this means that the most recent cause of a loss is not the cause that the insurers study to see if an event is covered. They look to see the active or first cause, check that the peril is covered by a policy, and then decide if a claim is valid.
Renewal Notice - At the end of your insurance contract term the insurer will send you an invitation to renew your policy. The notice will quote the new contract price and period of insurance and advise you of any changes to the terms & conditions of your policy.
Schedule - the schedule of Insurance outlines the sums insured under your policy, and tells you the policy sections you have covered and may make reference to any endorsements applicable to your policy contract.
Subrogation - Legally this right of one person to stand in place of another and to avail himself of the rights and remedies of that other person. Usually it relates to the insurers being able to recover their losses.. more...
..... Additional Information
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07/24/2008
What is Buildings and Contents Insurance?
Also referred to as Home Insurance, Homeowners Insurance or Household Insurance, they amount to the same. Quite simply they are insurance products that can be purchased from a variety of sources to cover the fabric of your home and / or your personal possessions that are kept in the home. Cover can be extended to cover items such as valuables that are temporarily removed from your home. This extension is often called “All Risks” Insurance. None of these insurances are compulsory but you may find it a condition of your mortgage that you buy at least Buildings Insurance to protect the lenders financial interest in the property. Most policies are similar in the covers they provide as mortgage lender etc have a standard set of perils that must be provided to secure a loan on the property. Probably the biggest purchase you will make in your life is that of your home. To qualify for a mortgage to purchase a property, you will need to satisfy your lender that you have a Home Insurance policy in force that confirms to their terms & conditions. Most insurers are aware of these terms & conditions and aim to make their polices compliant. There are a large number of policies on the market available from insurance companies direct, banks, building societies and via brokers who may be able to offer you more choice. more...
..... Additional Information
Here
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