Home Insurance Myths Dispelled

June 11 - Contrary to what you may have been led to believe, it is not compulsory to take out home insurance through your bank or bond provider on your property.

Many banks try to pressure customers into taking out insurance through their institutions for the simple reason that they are a shareholder in these insurance companies.

However, the National Credit Act specifically makes accommodation for home buyers to apply for insurance at any company they feel comfortable with.

Nobody can deny the importance of having a sound property insurance in place, bringing together a policy that incorporates fire, storm, lightning, earthquakes and more.

However, while banks may try to sell property owners all the reasons in the world why they should take out 'their' insurance, the bottom line is that consumers should only do so after they have shopped around for the best deal.

Naturally, it may be more convenient to take out insurance with the same bank or bond provider, and in some cases, these institutions may even provide a better price, however the choice is always yours to make.

After giving this message, experts reiterate another, no less important one.

Homeowners should make sure that their properties remain properly insured as under insurance could set them back their life savings if the property becomes damaged or destroyed.

Consumers are encouraged to have their homes and property revalued on a regular basis, especially if they have made changes and upgrades, in order to make sure that their insurance policies are kept up to date.

6/11/2010 8:36:29 AM