When you buy a home, it is essential to get the correct type of insurance policy. No policy is alike, and the type you need to get will depend on where you live, what you have in your home and much more. Continue reading to learn what you need to know to make a solid decision prior to making an insurance or home purchase.
Lots of renters neglect the importance of renter’s policies. Your rental is covered by fire insurance owned by your landlord, but your personal property is not protected. A renter’s policy will protect your belongings from a flood, fire or theft.
Lower your homeowner’s insurance annual premiums by as much as five percent by maintaining a security system that is directly tied to your neighborhood police station. All that is required to qualify for this discount is to verify that you have central monitoring, which can be through a bill or insurance company contract.
If your home is damaged severely with water, do not dispose of any destroyed property before your insurance adjuster can assess the damage. You can remove destroyed items from the home so that they do not cause further water damage to floors or other items, but leave them on the property. Failure to do so means you may not be compensated for those items.
In case of loss, to make sure it is easier to replace valuable items such as guns, jewelry and electronics, document these items with photographs. Although the process is time-consuming, it will be well worth it if doing so means that you will be reimbursed for the full value of your lost property.
When you are dealing with homeowners insurance keep in mind that some insurance companies will actually lower your premium if you get your mortgage paid off. They will think that since you own the home outright you are more likely to take better care and pride in your home.
When you are going to purchase homeowners insurance there are certain things that you should look for in a policy. A good thing to have is guaranteed replacement value insurance. This means that no matter the cost your home will be rebuilt if a disaster were to happen. Most people think this is automatic, however, since home values increased it probably would cost more now than what you had originally paid for the home. This way you are covered.
An alarm system is a great way to lower insurance costs. This decreases the chances of someone breaking into your home. Your insurance carrier will find you to be less likely to be a risk, and cut your premiums accordingly. Send your insurer the receipt for installation, and they’ll reduce your premiums.
Security System
Install a security system to help lower your homeowner’s insurance premium by 5%. Your security system must be watched over by a central station or tied directly to your local police station, in order to get this discount. Your insurance agent will want to see proof that your security system is being monitored.
Those nearing 55 years in age should get a policy review or a new policy. Often, insurance companies offer discounts to senior citizens beginning at age 55. If your insurance provider does not offer this, it might be time to search for something new.
If you need to file a homeowner’s insurance claim, you’ll need to prove your losses. A good way to document your possessions is to take a video while walking through your house, describing the items. Then upload the video to a safe, non-public place online, so it won’t be destroyed if anything happens to your home. Scan receipts for your possessions, too.
If you have home insurance and also have a dog, make sure that you look for policy options that cover people who may be attacked by your dog. It’s a strange and backwards world sometimes, but an intruder can actually sue you if your dog attacks him. Yeah, it’s crazy, but that’s why they have these coverage options.
Pay off the mortgage entirely prior to getting homeowner’s insurance. Your insurance company will offer substantial savings. This is because the company believes homeowners care for their homes better than renters or people with mortgages.
You should consider the increase in home insurance that you will face if you invest in a swimming pool or trampoline for your property. These items are deemed risky and will likely raise the cost of your premiums by roughly ten percent or even more for the year.
Owning the right home owner’s insurance policy may prevent big headaches in the future. Compare different insurance providers and policies before you purchase one. Do some research on insurance and educate yourself. The tips above will assist you in your insurance decisions.
If you are doing any remodeling, it’s a good idea to think about how it will affect your insurance rates. A home addition will increase your insurance costs, but how much the increase is will be determined by the type of building materials. Wood is more pricy than cement and steel in terms of being insured, because it can be damaged by weather or fire.