The 6 most common Property Insurance Mistakes

What are the 6 most common Property Insurance mistakes?

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Property Insurance Mistakes

Take care or you could lose everything!

The more successful you are, the more you have to lose. This statement seems simple and uncomplicated, but it also holds valuable truths.

Consider the following scenario:

You own a primary residence which can be classified as an historic home, then you own a beach house, as well as a condo in another city. Additionally, you own a collection of paintings which was an excellent investment and the value of the collection has increased drastically. You also volunteered to serve on the board of your favorite charity.

Ensure that you are adequately covered by taking the following 6 points into consideration:

1.      Gaps in Homeowners Insurance

Review your coverage on a regular basis and take into account current replacement costs. Take special care when you own different homes in different locales. You may make use of more than one insurance company and to stay on top of things, you should be aware of the different rules, policy renewal dates and limitations regarding each policy.

2.      Properties with Unique Characteristics

If you own property with unique characteristics, like turn of the century craftsmanship, remember that  a standard homeowners policy won’t cover materials and craftsmanship needed to repair a 19th century staircase or fireplace.

Coastal homes may face flooding, wind damage and subsidence. Be sure to obtain the relevant information regarding any natural disasters relevant to an area where you select to buy a property.

Condominiums and apartments may feature a different set of rules regarding collective property and rules. Avail yourself of all the necessary information pertaining to the body corporate  and maintenance of the structure and be sure to adapt your insurance policy to cover any eventuality.

3.      Art and Collectibles

Once again, standard homeowners policies are not designed to adequately cover valuable art collections, antiques and similar valuables. You may need a specialized policy that addresses the following critical points:

·         Is a professional appraisal of the art collection done?

·         How is the value of the art collection determined?

·         Will updated appraisals of the art collection be done?

·         Will damaged or destroyed items be paid out in cash?

·         Will additions to the collection be appraised separately?

Be sure to have these important questions answered to your satisfaction when insuring your valuable art collection.  

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Art Insurance

4.      Household Employees

Be sure that household employees are covered in your policy for injury, death or loss of income when in your service. You may be held accountable for medical expenses and lost wages if your employee is injured while working for you.

Keep in mind that it is safer to ensure that all your household employees contribute to a   workers compensation fund. Finally, if an employee drives your car as part of his/her duties, include the employee on your car insurance policy.

5.      Board Member Insurance

If you are sued as a director of a non-profit organization, be aware that excess liability cover could offer protection against liability as a board member.

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Directors Insurance may save you a lot of money

6.      Policy Reviews and Updates

Regularly review the status of your policies and ensure that each policy is up to date regarding renewal dates, value of your property and changes to your family.

Interesting & Valuable Reads about Home & House Insurance

Why Insurance is a necessity

Why vacant property insurance is essential

Home Owners Insurance Pitfalls

A comprehensive review of your policies should be undertaken at least every two years.