Things to know before purchasing insurance

1. You must have an Insurance - Homeowners or commercial property owners have a need for insurance. Many who rent need insurance to protect their furniture and other personal property. Everyone needs protection against liability for accidents that injure other people or damage their property.

2. Check parameters for coverage - The rule is that...the better your coverage, the less you will have to pay out of your own pocket if disaster strikes. It is important to note that the amount of coverage you buy for your house, contents and personal property will affect the price you pay.

3. Compare Deductibles - The deductible is the amount you have to pay out of pocket on each claim and applies only to coverage on your house and personal property. Make sure when choosing a policy that you are comfortable paying the deductible if you make a claim. Remember, a policy with a $100 deductible will cost more than one with a $250 deductible. Higher deductibles may be available at a reduced price.

4. Choose Replacement Cost or Actual Cash Value - You have the option to choose to insure your home and belongings for either replacement cost or actual cash value. Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality, without deducting for depreciation. It is important to insure your home for at least 80 percent of its replacement value. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation.

Commercial Property

5. Look around Before You Buy - You are not required to purchase insurance from the company your lender recommends. There are a number of unbiased sources available to find out what different insurers charge for identical products and services, including your state insurance department, consumer publications and your public library.

6. Where to Shop - Check the newspaper and yellow pages of the telephone directory for companies and agents in your area. Remember to shop around to get the best price and service. If you stay in Kent, south London, then Ragarfield is an excellent option for commercial property insurance.

7. Read Your Policy Carefully - Make sure your home insurance policy is a legal contract. Read and understand the policy and make certain you understand its contents. Keep your policy in a safe place and know the name of your insurer.