As a home is one of the largest investments people are likely to make in their lifetime, it is a matter of common sense to make sure that you are properly covered just in case the worst happens. Insurance policies are so crucial to have nowadays, yet because we don’t often think about it, we can easily forget about taking out a policy until it is too late. So that you do not end up paying ridiculous repair fees, it is always better to be prepared for the worst.
The Importance of Any Detailed Survey
When purchasing a property, it is essential that your request a detailed report from a professional surveyor so that you get a complete rundown of the condition of the property, the strength of its foundations and any major or hidden defects that could become a problem later on down the line. By getting this report along with advice on what can be done to resolve any issues, you can make quick progress in resolving any defects found by the report.
Conducting a valuation report for insurance purposes provides an accurate property valuation so that in the event of damage or destruction, an insurance policy will be able to compensate you for precisely what your property is worth. Some insurance policies will also arrange for repair services to be provided in the event of a break-in, so a valuation is essential to ensure that you get the right amount of support and compensation needed to properly restore your property.
Cover in the Event of Destruction or Damage
While a valuation report in itself is important, it is also essential to remember that the valuation report does not represent being insured or covered. You will also need to take out a relevant property insurance policy, using your valuation report as a means of showing what sort of policy you should be looking at. This can sometimes be a time-consuming process as you look at what every policy has to offer, but it is well worth having the security to fall back on.
Reinstatement Cost Assessments
A reinstatement cost assessment is normally conducted on approximately what it would cost to completely rebuild the property from the ground up, in the event that it was completely destroyed. The rebuilding of this property in a reinstatement cost assessment is only conducted to an extent where the new building is of a condition equal to, but not better or more extensive than its condition when the valuation was first conducted.
While this is extremely helpful and reassuring, it is important that if you conduct any major renovations or extensions upon the property, the reinstatement cost assessment and valuation for insurance purposes is also renewed. Otherwise the property would simply be restored to the extent stated in previous documentation in the event of damage or destruction. Keeping a regular record of the improvement works done on a property and keeping your policies updated is one way you can ensure the security of your property in this aspect.
The Risks of Being Under-Insured
If you are under-insured or worse yet, not insured at all, you cannot guarantee that you will attain any compensation or support in the event of damage or destruction caused to your property. Any repairs conducted will have to be made out of pocket, which is why it is important that you have a valid insurance policy in place. While the destruction of property is rare, if it does happen, the cost of reparations far outweigh any potential benefits you would have in not taking out a property insurance policy. In these instances, it is better to be safe than sorry.
As previously mentioned, if you conduct any large or excessive renovations or extensions, it is important that you get your home re-valuated, in order to properly update your insurance policy. By keeping on top of issues such as these, you can help reduce the time spent getting your affairs in order and getting the support you need if the unthinkable should happen. In the long run, it is definitely recommended and it is also good at ensuring peace of mind.
Article provided by Mike James, an independent content writer in the property industry – working alongside a selection of companies including Cornwall-based Chartered Surveyors Hocking Associates, who were consulted over the information in this piece.