What s Not Covered by Cheap Building Insurance

Cheap building insurance is attractive at first glance, but in some instances it may be an indication that you will not be covered for some very important types of damage. Not all insurance policies are created equally, and what one policy will allow you to claim another will not offer a payment for. If you are very price conscious when it comes to finding insurance, don’t stop evaluating the quality of the policy. Looking at just the price of insurance alone can leave you under insured and in trouble when a natural disaster hits. Here are some things that may not be covered under a lot of cheap building insurance plans.

Flooding

If you live in an area that is prone to flooding, you may not be covered for floods or water damage under your building insurance policy. Getting covered for flooding will cost extra money in these cases. While this doesn’t mean your insurance rates will go through the roof, they won’t be as cheap as if you don’t need flood coverage. Similarly, damage caused by water in general may not be among the offerings of a cheap insurance plan. If you have old pipes or live in an area with a lot of rainfall, find out if you need to purchase separate flood insurance or can add it to your building policy.

Enough Coverage to Rebuild

Ideally, your building insurance will be robust enough to cover the cost of nearly replacing your entire home if you need to rebuild it after a severe store or a fire that makes the home uninhabitable. While it may be unlikely that you’ll ever need to do this, in the event of  a major disaster a significant portion of your home might become unlivable and you’ll with your maximum payout was larger. A cheaper policy may not offer enough coverage to pay for all the necessary repairs, because as premiums drop the maximum payout tends to dip downwards as well. However, if you search enough you may well be able to find a policy that is reasonably priced and can also afford enough coverage to pay for most or all of the expenses involved in extensive rebuilding.

Theft

Some building insurance policies will pay out in instances of theft, however many policies will assume that you have contents insurance for theft claims. Contents insurance is designed specifically to cover your belongings, so it usually makes sense to file a claim on that policy if there is a burglary at your home. While some building insurance can cover theft, one that is limited in nature is unlikely to consider this standard coverage and you won’t be able to file a claim for lost possessions. If your cheap building insurance doesn’t cover theft, you can always get an inexpensive contents insurance policy so that you have coverage.

Lodgers

If you won’t be residing in your home, but rather lending it out to a lodger, your cheap insurance may not allow you to cover the home. If you don’t inform your insurance company that a lodger is occupying the home and then you attempt to file a claim for damage, the claim may be denied if your insurance provider finds out who is really living there. It’s better to be safe than sorry, and pay more for insurance if need be than to try and deceive your insurance company and wind up in very hot water.

Cheap building insurance doesn’t have to be incomplete, but you are less likely to get the bells and whistles that go along with a more expensive policy. Things like flooding or vandalism might have limited or no coverage, and this can lead to huge bills in the event of a disaster. If you are in search of cheap building insurance, don’t get so caught up in premium prices that you sacrifice some very real needs. On the other hand, fight for the discounts you think you deserve and don’t let an insurer refuse you a discount that you believe you are truly qualified to receive. When in doubt, switch insurance providers if you think you can find a less expensive and fair policy elsewhere.

Sam Jiones the author of this article refers people looking for cheap buildings insurance to this page http://www.uswitch.com/home-insurance/ on uSwitch the price comparison site