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Insurance policies can and invariably do have excess amounts applicable on the various sections of the policy. Excesses such as this are dependent upon the type of claim that is made. This amount will be deducted when your claim is paid out and an excess is the amount of the insured’s liability in the case of a claim.

You must ensure that your rules and guidelines are in proper order and you must be certain that your assets are insured with the right amount. Household contents and homeowner’s insurance are both on a replacement cost basis, meaning that they must cover the cost of replacing your home and contents instead of their original cost. Under insurance can prove to be an expensive oversight when you need to claim under your insurance policy.Make sure that you comply with all requirements on your policyCarefully read and make sure that you understand every word on your policy so that you will easily be able to comply with all the requirements. This is the only legal contract that you have with the insurance company and it is binding. If you fail to comply with the requirements given in the policy, it could result in repudiation of a claim. A good example of this is when a policy states that for in order for theft to be covered an alarm must go off during the period in question. Claims are most often repudiated when people fail to activate alarms. Make sure that you have an  understanding of each requirement to ensure compliance, as this is just one example. When you have suffered a loss and need to claimWhen you suffer a loss caused by one of the insured risks, contact your insurance company as soon possible and wait for their further instructions. You should do what you think is good in emergency situations. Find out what your particular insurance company requires as far as documentation and be sure to get all of that together to submit your claim. When you submit a claim, written proof of damages is required and must include all estimates of damages and the cost of repairs in writing.  Remember that the insurer is going to cover the expenses for the damages. Do not give any instructions to any contractors to commence repairs without the written consent from the insurance company. If you authorise repairs and the insurance company is dissatisfied with the price, you could end up having to pay the difference between what the insurer perceives to be a reasonable price and the price charged by the contractor.If you, as opposed to the insurance company have authorised repairs then the insurer has the right to pay the insured a cash settlement in lieu of paying the contractor.This will mean that the claim has been settled in full as far as the insurance company is concerned and any hidden costs will be for your account.  Dissatisfactory work carried out will also be a problem between you and the contractor. They will ensure that the work carried out is to your satisfaction and if the insurance company authorises repairs then the agreement is between the contractor and the insurance company.Signing of the release formYour signature on the release form. Before they hand you a check most insurance companies will require you to sign a release form indicating that the insured party will accept payment as a full and final settlement. It is advisable not to sign this form until you are completely satisfied with the work or agree with the settlement amount offered by the company.That is the sole purpose of insurance - If you follow these basic guidelines then you will have peace of mind in the knowledge that in the event of a loss your insurance will place you in the same position as what you would have been, had you not suffered the loss.