Insuring one's home is an important step to peace of mind, providing financial support in the event of natural disasters such as fire, earthquake and hurricane, or man-made nuisance, such as theft.

"Home insurance is to ... substantially ease the potential financial burden that one can suffer at the hands of a loss," said Simone Foote, marketing manager at British Caribbean Insurance Company.

Some basic information is required to get the ball rolling, Foote advises. First up is the name of the proposer (the person who wants insurance).

Second, the insurance company needs to consider the risk address.

An important factor when underwriting risk is a community's vulnerability to disasters such as flooding, subsidence or landslips and coastal areas.

The level of vulnerability helps determine the rates the insurance company will charge.

Your Infrastructure

Infrastructural safety is another criterion for assessment. A lower rate is likely to be applied to slab-roofed houses compared to homes with zinc or other material susceptible to hurricane damage.

Awnings, swimming pools, tanks, paved areas, boundary walls, and contents such as furniture, household goods and personal effects, and electronic equipment are other elements for consideration.

Marcia Jarrett, underwriting manager in the customer service centre at the Insurance Company of the West Indies, said "The market value of your home can also be determined by valuation, but a quick way to estimate the value is to apply an amount per square footage, and the range is about $4,500-$8,000 per square foot, depending on the location and construction of your home."

sonia.mitchell@gleanerjm.com.

Steps to insuring a home

Valuation is needed to ascertain the replacement value.

Go to the insurance company with valuation report.

The individual is given a quotation to insure property at the replacement value.

The prospective insured should then complete the proposal form.

Premiums are then paid.

The policy is then issued outlining terms of contract.