Household & Hurricane Coverage
Insurance protects you from financial disaster in case of burglary, fire or storm damage. Policies can vary in what they offer, so here are some points to bear in mind when choosing household insurance:
- Decide exactly what you want to insure - buildings (including interior fixtures and fittings), contents (furniture, carpets, clothes and other belongings) or valuables (jewellery, cameras, or silverware).
- Find out exactly what the policies cover, and compare the terms and premiums. Choose the one that suits you best.
- Look for exclusions (what a policy doesn't cover).
- Check whether you will have to pay the first part of any claim (called an excess). Presently in the Bahamas, most policies that include hurricane damage require you to pay the first 2% of the insured value for storm damage.
- If a policy does not provide the cover you want, ask your broker what changes are possible.
- Complete the application truthfully. The policy may be invalid if you give false information. Keep a copy of the completed form.
Advice on Insuring your Home
Most policies require that buildings be insured for their full rebuilding cost, not the price you would normally expect to sell them for. Check what the policy says.
It is up to you to determine the rebuilding cost. Ask a contractor for help, or seek advice from a professional assessor.
Tell the insurer or broker about any major changes to your home - like an extension, or central air conditioning - as soon as you start the work.
Don't under-insure. Insuring for less than the cost of rebuilding your home could result in a claim not being met in full, even when it is a claim for partial damage and less than the sum insured.
If you live in an apartment, the owner normally arranges the insurance on the building. Check what your lease says and whether there is adequate cover.
Advice on Insuring your Belongings
Decide what you want insured - your household contents generally include clothes and other belongings.
Tell the insurer about valuable items like jewellery, furs, silverware or artwork, which might need separate or extra cover.
Determine how much it would cost to replace these items and keep an up-to-date inventory, with photographs of valuables, and equipment serial numbers. These will make claiming on the insurance easier. Particularly valuable items should be professionally appraised and certificated.
If you get additional expensive items you should increase the sum you are insured for.
Decide what kind of cover you need. Some policies will provide the full cost of replacing stolen or destroyed items. Others take into account wear and tear and will pay a reduced amount.
Don't forget the importance of insuring yourself for liabilities toward other people. Almost all household and contents policies provide cover of this sort - for example, against your responsibility for injuries to visitors and damage to their property, or accidents caused by your family.
If you take out building insurance arranged by a bank, but insure the contents with another insurer, check that there are no gaps in the cover as a result.
Please do not misunderstand a policy name - even an All Risks policy has risks it does not cover and a comprehensive house policy does NOT cover all risks. A policy is a legal contract, so make sure you understand what it means.
