Homeowners insurance is an aspect of home ownership that many do not always account for in projecting their budgets. It is also an area of tremendous mystery, as it is more complex and involved than basic auto insurance. Read this article to shed some light into this area of your life.
Buy home owner’s insurance without any hesitation. Without homeowner’s insurance, you are completely without recourse in the case of fire, natural disaster, or theft. Homeowners insurance probably won’t be optional if your home has a mortgage.
Many renters tend to overlook renter’s insurance. While your home’s structure may be covered by the landlord’s policy, your own personal items will not be. You have to have your own contents policy in place.
Never just think about purchasing homeowner’s insurance. Go out and do it. Without homeowner’s insurance, you are completely without recourse in the case of fire, natural disaster, or theft. If you have a mortgage on your home, you may not even have a choice about buying homeowner’s insurance; it’s probably required by the terms of the loan.
Many homeowners want to decrease their annual premiums. Select one with higher deductibles if you want to maximize your policy. If you have a larger deductible, you will pay less on your premium. However, ensure you have an emergency repair fund to make necessary small repairs that your insurance will not pay for.
Check with your homeowner’s insurance before adding any major recreational structures to your property. Adding on a swimming pool, above ground or in ground or even children’s toys, like swingsets and trampolines, can significantly raise your homeowner’s insurance rates. The increased cost of these items should be considered before any major renovation.
What would do you do if your home was destroyed in a natural disaster and needs to be rebuilt? If you purchased your homeowner’s insurance years ago, the cost of construction and materials may have gone up. For this reason it is important to make sure you buy a Guaranteed Replacement Value Insurance premium which will guarantee that your home will be rebuilt regardless of the cost.
Make your insurance claim hassle free by backing up your inventory list with photographic evidence. You may feel silly taking pictures of your valuables, but if you have to file a claim you will be able to get your money easier.
When you have homeowners insurance, about once a year you should sit down and review your policy. Maybe there are things that you have done such as installing smoke alarms, burglar alarms or a sprinkler system. If you’ve done those things and provide proof, that may help to lower your premium.
Smoke Alarms
Flood insurance should not be overlooked when you purchase a house. Flooding is not typically covered by homeowner’s insurance, and due to recent events, it is clear that floods can happen in areas you don’t expect. There are few things worse than having a home damaged by a flood, so buy flood insurance while you can.
Smoke alarms can help you save on your homeowners insurance premiums. With installed smoke alarms, you can save around 10% or more on your annual homeowners insurance premiums. It is possible that if you add more smoke detectors, your insurance agent will further discount your policy. Don’t forget to tell your agent about your smoke alarms.
Lower homeowner insurance premiums with a security system. Be sure to choose a system that is monitored from a central location. This gives proof that your home carries a lower risk and allows the insurance company to give you a discount, sometimes of 5 percent or more. Be sure to keep all security system paperwork, as you may be required to provide copies to your insurance company.
As you prepare your claim, be sure to get multiple price quotes from respected contractors in advance of entering into negotiations with the insurance adjuster. If you had an emergency that required immediate repairs, save and file away all your invoices, receipts and important documents. This allows you to recoup your costs. Also, keep track of your expenses, such as lodging.
To ensure the protection of major home improvement projects always report them to your homeowner’s insurance company once they are completed. While this may result in a small premium increase, it is the only way to make sure that the added value of your home is covered in case of damage.
Homeowners Insurance
Be sure to let you insurance agent know if you are approaching your 55th birthday. This may save you some money on your existing policy or make you eligible for a better policy. A lot of insurance businesses offer senior citizen discounts, and they usually start at age 55. If you aren’t offered this discount, you might want to look around.
Earlier in this article, the complexity of homeowners insurance was alluded to. Now that you have read this piece, you should be more familiar with what homeowners insurance covers and how you should account for it in your life. Keep these tips in mind in the coming days, and you can make this a very successful area for yourself.