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What to Look for in Your Deposit Protection Insurance
You’ve been surveying your property for some time now. This has led you to discover some pretty rundown parts.
Other features of your home even look as though they need replacing. Overall, your property is just crying out for improvements.
A home improvement today will mean better value for your property in the future. This means you could get more money for it when you put it on the market, or you could use it for a longer period of time. Either way, improving your home will be beneficial. However, it can also get expensive — especially when you lose your deposit when the contractor files for bankruptcy or just closes up shop.
This stressful scenario could be avoided when you get deposit protection insurance. This is a kind of insurance that protects the money you’ve paid a contractor when you hired the service. It is a very important safety net to your investment, and it ensures that the improvement project can be finished, even when the original contractor cannot continue with the work.
So what do you need to look for with your deposit protection?
Look for ease in application. You have two choices when ensuring the protection of your deposit: You can go to an independent insurer or you can choose contractors that offer such insurance. The latter might be easier because then you need not apply to get the policy. As a client, you automatically receive deposit protection from a contractor that has been approved by an insurer.
Activation of the insurance should also be considered. Consider what you need to do when your contractor informs you that it is unable to finish the job. How do you claim your insurance? Will you have to send an email or a letter to the insurer? Do you need to wait for a certain period before benefitting from the insurance?
Ideally, you’ll want automatic activation of the policy once your contractor or installer has ceased to operate.
Another key thing to look for with your deposit protection is the coverage. How much will the insurance cover? What is the maximum value? How long would the policy last once it is activated? Do you have the option to extend the policy, particularly when the new contractor informs you of the extensive work that has to be done?
Lastly, consider any restrictions or limitations attached to the deposit protection. Read the policy thoroughly and be aware of what you cannot do with the insurance, if any. It would be worth noting that some deposit protection providers do not have any restrictions with their policies; some even still provide protection for home improvements even when you’ve moved away and someone else is taking care of the property.