Buying a new home comes with a lot of responsibility, including getting the right home-owner’s insurance to protect your investment. If you never purchased this type of policy before, you surely have many questions. Use these tips to make sure your policy properly covers you.
A recent inventory of your home will help your claim be processed much faster. Anyone will tell you that it is difficult to remember everything you own when a catastrophe occurs. The simplest way to get pictures of everything is to open your closets and snap a few photos.
Even if renter’s insurance isn’t mandated where you are living, it is highly recommended. You simply never know what is going to happen. Renter’s insurance covers all your valuables in the case of some disaster like a fire or a flood.
Make sure you notify the company about fire or security alarms you have installed. A security system that is linked to a reporting agency can cut your monthly premiums down at least five percent.
Make sure your policy includes flood insurance. Most insurance policies don’t cover floods, so you have to buy the coverage separately. The loss of a home and the resulting damage due to flooding is tragic- be certain you are covered in case of emergency.
Multiple Policies
When considering home insurance, be sure to check with different providers to see if they have discounts for having multiple policies with them. You may be entitled to quite a discount if you have multiple policies with the same provider, such as home, auto, and life insurance. If they don’t offer a discount, ask them why. If you haggle you may get results, otherwise you should consider your options.
The cost of installing a security system is worth every penny. In addition to feeling more secure, you will be saving money. With insurance the more you can do to preserve your investment, the greater the savings. You will eventually save enough on premiums to pay for much, or even or all, of the security system.
To protect your personal property in a rented residence, you need renter’s insurance. The landlord or property owner will have insurance to cover losses on the building, but not on the items inside your unit. This is your responsibility. Fortunately, renter’s insurance is quite affordable, and available from most insurance companies and independent agents.
You might be able to get a discount on your homeowners insurance if you have a security system or alarm. It’s not enough to have local alarm — to qualify for the discount, you usually have to have a monitored service, and the insurance company will ask for proof of this, so make a copy of your monitoring service contract to give them.
Set a long term goal of paying off your home mortgage as quickly as possible, as this will allow you to spend less to purchase homeowner’s insurance. Whenever a person actually owns a home and pays it off, insurance companies will view them more favorably. Therefore, they will generally offer lower annual premiums. When you finally pay your mortgage, call your insurance companies to start saving.
Don not, under any circumstances, allow your hazard insurance on your home to lapse. Most mortgage companies have a clause in the agreement you signed that in the event you don’t pay it, they will find a new policy for it, sparing no expense, and charge you for the premium. It will usually be at least double what you were paying before. You are better off doing whatever you need to in order to keep your policy current.
You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.
Cut your insurance costs by getting fire and smoke alarms for your home. This protects you and your family and reduces the cost of your policy. Older homes can also have this system implemented for security and a lower policy.
If you have other people living in your home, check your homeowner’s policy to find out what the coverage is in case of a disaster. Policies may cover only the possessions that you claim. You might owe your roommate money if you don’t bother to check your coverage.
Take the time once a year to review your policy and make comparisons with other home insurance companies. You may find that the company that gave you the best premium rate last year is going to cost you more for the following year. Do not hesitate to change to another reputable company if the price and coverage is right.
Your home should have smoke alarms installed. Detectors are usually preinstalled in newer homes. If your house lacks them, add one to every room. Along with being able to save you and your family’s lives, smoke alarms will also reduce insurance premium costs.
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.
Stay vigilant over the cost of your home insurance premiums by doing an annual check of your policy statements, and seek quotes from other companies to ensure you are paying the lowest rates. Your insurance doesn’t always automatically reflect changes that can lower your rates, so you want to make sure any discounts for adding alarms, sprinkler systems or removing a swimming pool are applied. Staying vigilant is the best way to save money!
The amount of coverage you need for your home should be considered carefully. You don’t want to underestimate and find out that cheaper plans don’t cover your belongings if there is a tragedy. Your home will be more protected if you spend more money.
Buying a home is a huge investment; therefore, it’s important that you properly protect it. Home owner’s insurance can help you protect your home, but you need to know a few things before buying a policy. While you compare different policies and insurers, think about these tips on homeowner’s insurance.