There are many, many reasons that you need to be protected by insurance as a homeowner. Even if someone is trespassing on your property and gets attacked by your dog, you could be on the hook for the hospital bills. It’s crazy, yes, but that’s how the system works. Use these insurance tips to make sure you’re always protected.
Buying homeowner’s insurance is not optional – it’s a necessity. If you lack a homeowner’s policy, you will have no options if a natural disaster, theft or fire occurs. Insurance may be a requirement if you are mortgaging your home.
Make sure you have enough smoke detectors installed in your home. Older homes especially may need additional ones in order to get a better homeowners insurance premium. Even some newer homes can benefit financially from adding additional detectors apart from those necessary to meet the requirements.
When considering insurance for your home, be sure to sign up with a deal that has a guaranteed replacement value clause written into it. This will ensure that your house will be covered no matter what the cost of materials and labor currently are. This helps if you are in an area that has seen and will see an increase in construction costs and property value.
When you comparison shop for homeowner’s insurance, make sure you let insurers know you have installed a security system at your house. You can reduce your premium each month by up to five percent if your security system is connected to a security service should you be burglarized or have fire.
For things like homeowner’s insurance, there are things that you can do to help lower the cost of your coverage. Things like a home alarm that is monitored by a central location, can help drop your premium almost as much as 5%. You need to have proof of the alarm to show your insurance company, so you have your contract or bill of sale to show them.
When looking for a homeowners insurance policy, check with the agent who insures your vehicles. A lot of agents will give you a discount if you have more than one policy with them. It is possible to get a discount of 10% or more by insuring more than one thing with the same agent.
To be sure that your getting your claims processed in the right manner, keeping a record of what your home contains is necessary. If you have a large loss, it can be overwhelming to remember everything you had. The best way is to photograph everything, even your closets.
Talk to multiple contractors and get quotes before you file your claim. Be sure you keep all documentation and receipts for work you did in an emergency so you don’t incur more loss. You should also keep track of any money spent on places you stay while you are waiting for your home to be fixed.
Add some smoke alarms in every room. Insurers want to reward your safety with reduced premiums. Making sure you have a lot of smoke or carbon monoxide detectors in your home can mean that you save a lot of money.
Some things that your home has in it will make your insurance go up or down no matter what has happened to your home. For example, a swimming pool will increase your insurance cost due to the increased liability. If your home is far from fire hydrants or emergency services, it can end up driving up the costs of your policy. That is not to say that you should buy a home based on such considerations, but you do need to understand their impact on pricing.
Stay away from pools and trampolines. While your kids may love to jump on the trampoline or swim in the pool, these little extras are insurance nightmares. Insurance companies will up to double the rates of a homeowner who installs either of these items. Stay away from extras with the potential to harm!
Stress safety if you want to keep renter’s insurance costs down. Smoke detectors, fire extinguishers and security alarm systems can often net you a good discount on your insurance premiums. In addition, these safety items can save your life; therefore, you should purchase them and learn the proper ways of using them and keeping them up to speed.
Flood insurance may not seem necessary if you don’t live in a high-risk area, but it could be a good idea anyway. Up to a quarter of the flooding disaster claims made are from homes that are not in high-risk areas. You may be able to get lower rates on your flood insurance if your home is in a lower risk area.
Don’t automatically assume that your homeowners policy will reimburse the full replacement or retail cost of your valuables if they are destroyed or stolen. To be covered, they must be included on your policy in the form of an endorsement. A qualified appraisal must be obtained and an amendment added to your policy to ensure full protection.
Document all of your valuables and keep the pictures or videos of the things that you want covered under your home insurance, in a fireproof lockbox. This will protect your files and make filing a claim for the missing or destroyed items with your home insurance company, easier and quicker.
Having an alarm system or home security system will lower your home owner’s insurance premiums. The cost of installing these systems is a small price to pay for the peace of mind they will give you any time you are away from your home.
Just about anything can happen and leave you on the hook for some big bucks. Unless you’re protected, you could end up losing your house for multiple reasons. Follow these tips and use them to work up a solid insurance policy that’s affordable and that provides ample protection for your home.