If you are looking for basic information regarding homeowner’s insurance plus some other tips that you might not have heard of, this article is for you.
The importance of renters insurance can easily be overlooked and this is a mistake. Even though you may get coverage because your landlord has fire coverage, your personal stuff may not be covered. You should have your own renter’s policy to make sure everything you have is covered.
Lower your annual home insurance premiums by raising your deductible. The higher the deductible, the less you pay. Even though you will be stuck with footing the bill for smaller problems you may encounter, it is worth it in the long run. Insurance companies tend to raise a homeowner’s premium after any claim they make, no matter how small.
If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.
Make sure you notify the company about fire or security alarms you have installed. 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.
Insurance Company
If you need to file a claim with your homeowner’s insurance company, do so promptly. Quickly respond to any request for information as completely as you can. The more information the insurance company has, the faster they can process your claim. Also, much damage suffered by homes will only worsen with time, meaning that if you let it sit, the cost will be higher.
Flood insurance may not seem necessary if you don’t live in a high-risk area, but it could be a good idea anyway. It’s estimated that one fourth of flood claims are made outside of areas that are high-risk. If you reside in an area that is not known for flooding, you may find this portion of your insurance cost is reduced.
Like most homeowners, you want to keep your insurance premiums as low as possible. Installing and maintaining a high-quality home security system can lower your yearly premiums by five percent or more. Make sure that it’s centrally monitored by a security company or linked to a local police station. Your insurance company will want to see evidence that your system is monitored before they give you the discount.
Make changes to your policy as you acquire new possessions and as your children move out. It will be to your advantage to look over your coverages to make sure everything is properly covered. When you want to cover a piece of art or jewelry, call your insurer and add a rider for it.
One way to score discounts on your homeowner’s policy premiums is by installing a home security system. These systems are often inexpensive to install, but can give you peace of mind whether you are home alone or away on vacation.
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.
Think carefully about the cost of insurance before remodeling your home. Adding rooms or extensions will add to insurance costs, but the amount it increases depends on the materials used. For example, concrete or steel framework can save on insurance premiums. Wood, on the other hand, is more costly because of possible damage due to inclement weather or fire.
Choose a policy that contains “guaranteed replacement value”. You don’t want to end up in a trailer instead of a home similar to the one you have been paying for, for years. It will cover the costs associated with getting a house that is like the previous one in the event it is destroyed.
As you have seen, there is quite a bit of information in regards to homeowner’s insurance. Hopefully, you will find these tips beneficial when making decisions regarding homeowner’s insurance.