Did you know that homeowners’ insurance can help keep you protected against frivolous lawsuits? Let’s say some buffoon decides to take a jump over your fence and into your swimming pool. If he hurts himself, he could sue you and win big. This is one of the many reasons you need insurance and one of the reasons you need these tips to help you find the best deal on a package.
There are two things you can do to lower your home insurance premiums. The first one is to put a security system in your home. You’ll see that this can actually lower the cost of your insurance by up to 5%! The insurance company won’t automatically know you’ve installed a security system, however, so you must submit proof of this. Next, have smoke alarms installed in every room. Doing this can save up to 10% every year on your premiums.
Be aware of what your home insurance actually covers. A regular home insurance policy doesn’t cover things such as flood damage. This type of insurance needs to be purchased separately through the Federal Emergency Management Agency. Another thing to consider is earthquake damage. If this is something that you may experience, you will have to buy specialized coverage from a private home insurance company. Luckily, both of these types of coverage are relatively inexpensive.
Make sure that you have a record of everything that is covered under your home insurance. Make a detailed list, and take pictures of all valuables. It also helps to keep receipts for big ticket items. There is free software online that will enable you to create a home inventory, room by room. If you need to make a claim, having all this information on hand will help to speed up the process.
Understand that having a family can change the type of insurance that you get. It’s worth taking a second look at your policy to see if there are coverage limits on things like jewelry and other high-value items. If you find that you do have limits, make sure that you get additional coverage for those items to cover them.
When considering insurance for your home, take into account the building materials that are in the home you wish to insure as well as any possible additions. Insurance companies will most likely grant greater rates for safer construction materials such as steel and cement as opposed to flammable wood. Be sure to compare rates with multiple companies also.
If you want your property to be fully insured against loss or damage, you need to periodically reevaluate the worth of your home and adjust your coverage accordingly. If you have made major improvements, additions, or repairs that would affect the worth of the home or which would cost significant amounts of money to replace, and they are not reflected in your property insurance coverage, you will not be able to get what you’ve put into your home in the event you need to file a claim.
Your premiums will be reduced if you install tracking devices and alarm systems. You’ll have a better chance of getting a lower rate if the insurance company knows you have taken these extra security precautions. Tell your insurance provider as soon as you put in the safety features. They might immediately lower your premiums.
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.
Flood Insurance
You can save a great deal on your insurance if you are able to pay your mortgage off. Houses paid in full set the minds of the insurance company personnel at ease. Due to this, many companies offer annual premiums that are lower to them. Once you have paid your mortgage in its entirety, contact an insurance agent in order to realize the discounts.
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.
Mortgage lenders will require you to have home owners insurance on your property. A policy can help protect your investment against certain types of natural disasters. Finding out how much a policy is going to cost you for your potential new home is an important part of knowing if you can afford the home you are considering.
If you are doing any remodeling, it’s a good idea to think about how it will affect your insurance rates. For example, you might install a new bathtub and bathroom sink, the value of which should be included in your coverage. The cost and quality of materials will determine the exact amount to be increased. Wood will cost more than cement or steel structures to insure as it more susceptible to fire and harsh weather damage.
Don’t wait around until someone attempts to take you to court for something out of your control. Make sure you’re always protected with the best homeowners coverage possible. Use the tips we outlined in the above article to save money on a quality insurance plan. You never know when something bad or very strange is going to happen.