Your home is one of your most valuable assets, and it is important to protect that asset with good insurance. But how can you be sure you have a good homeowner’s insurance policy? And how do you know what you should avoid? These tips will give you the information you need to make good insurance choices.
When shopping around for homeowner’s insurance rates, be sure to mention any security systems that your home may have. For savings of up to 5 percent every month, install a home security system that connects with offsite security.
Do not delay when it comes to homeowner’s insurance, simply buy some. If you don’t have it in place, you’re not covered for damage. Homeowners insurance probably won’t be optional if your home has a mortgage.
Check the status of your homeowner’s insurance premiums at least once a year, to see if you may qualify for a lower rate. Your current rate may be based on an old crime statistic, for example, or you may have installed a security system that could lower your rates. Discuss these changes with your insurance agent.
Even if you don’t live in a flood plain, you may need flood insurance. 25% of all federal claims are for flooding outside of high-risk zones. A price-reduction on flood coverage is included in most low-risk locations across the map.
To save money on your homeowners insurance talk to your agent and see if the company provides discounts for installing additional smoke detectors. Many older homes lack them in areas that are considered standard places to install today and many insurance companies will provide a discount as an incentive for you to add more.
If you want to be sure you are paid properly for a homeowner’s insurance claim, you must report any loss to the insurance company immediately. Claims on your home are subject to certain time limitations, so waiting too long may give the insurer a reason to say that the claim is no longer valid.
If you live a roommate, you will want to get the information on what is covered in your situation. Sometimes the policy can cover everything, and other times it can cover just you. See what is covered to avoid making out a check to a roommate following a disaster.
Flood Insurance
If you want to be sure your home and belongings are covered in the event of a flood, the time to buy flood insurance is not the moment it begins to rain. Most flood insurance plans will not cover flood damage incurred within the first 30 days of purchase, so you need to make that call today, rather than putting it off.
Pay off the mortgage entirely prior to getting homeowner’s insurance. That can help cut your premium in a large amount. This is because the company believes homeowners care for their homes better than renters or people with mortgages.
Insuring a vacant house is very expensive, as a vacant property is a magnet for vandals. Vacant house insurance can cost more in a month than regular homeowners insurance costs for a year. If a family member can’t stay at the house, consider renting the property out, or exchange free rent for house sitting services to avoid having a property sit idle.
Purchase a burglar alarm with central monitoring to save money on your home owner’s insurance. Most insurance companies will discount your policy price by up to five percent if you can show proof of a centrally monitored alarm system. The price you pay for the insurance may very well be offset by the discount on your insurance premiums.
Home owner’s insurance is costly, but not having insurance can be even more costly. But, there are things you can do to decrease this expense. If you raise the policy deductible, your premiums will decrease. Improvements to your home, such as installing a new security system or repairing your roof, can also lower your rate. Consult your agent for a list of improvements and updates that may save you some money on your homeowner’s policy.
Many people are surprised that when they pay off their mortgage, their home insurance rates drop. There is a dramatic drop in the cost of home insurance when you own your home outright. This is likely due to the fact that insurers think that if you own it, you are likely to take better care of it.
Fire Alarms
You must install smoke alarms inside your home. Many new homes already have them in place. If your home does not have any, you have to install one in every room. Not only can they save the lives of your family, they will also lower your homeowners insurance.
Install smoke detectors in your home. If you do not already have fire alarms, get one or several. Check to see how many fire alarms are recommended for a home of your size. It will lower your home owner’s insurance premium and help to keep you safe in the event of a fire.
It’s important to take the time to assure your homeowner’s insurance policy is a good one. Now that you’ve read this article, you have advice that will guide you through the insurance process. Take time to review your insurance policy from time to time. Protect one of your most valuable assets!
You can place one-twelfth of your premium into an escrow account each month through your mortgage payments. This will help you avoid the financial burden of making a huge lump-sum payment each time the annual premium is due.