It is important to keep in mind that your homeowner’s insurance will replace your possessions in the event of loss. Your insurance must be comprehensive enough to cover your items, yet affordable at the same time. The guidelines below will help you know what to look for when purchasing your insurance coverage.
There are two ways to decrease the cost of your home insurance. The first thing to do is have a security system installed. This can reduce your premiums by five percent. Be aware that you have to show your insurer a bill or contract as proof that a security system is working in your home. Also, make sure you have working smoke alarms. You could save up to 10% every year.
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.
Insurance Policy
Purchasing flood insurance is a good investment for your new home. Most basic policies don’t cover flooding unless you specifically request it. Consider homeowners affected by Hurricanes Katrina and Sandy — many lived in areas where flooding is never considered a threat. There are few things worse than having a home damaged by a flood, so buy flood insurance while you can.
Check the provisions for “due diligence” on your homeowner’s insurance policy. If you have neglected to keep up with regular home maintenance, your insurance policy may not cover the problems that result from that negligence. Check with your insurance agent about what types of documentation is required to prove you have been doing the maintenance.
What would do you do if your home was destroyed in a natural disaster and needs to be rebuilt? If you purchased your homeowner’s insurance years ago, the cost of construction and materials may have gone up. For this reason it is important to make sure you buy a Guaranteed Replacement Value Insurance premium which will guarantee that your home will be rebuilt regardless of the cost.
If you are aging past 55, that’s when you should ask for a review of your policy, or start shopping for new policies. While you may not feel like a senior citizen quite yet, a good number of insurance companies start giving a senior discount for those aged 55 and up. If your insurer does not provide such a discount, do some comparison shopping.
Home owner’s insurance can help to protect your home from a variety of issues. If there is damage that is done to your home, it can be covered and paid for using your insurance. This can include damage and lost property from theft or even some specified disasters. Every home owner should have a policy.
All apartments should be equipped with a smoke alarm or two. If your apartment does not have one, you can pick one up for very little money, and it will save you some money on your renter’s insurance policy. It could save your life as well as saving you money.
Although home owner’s insurance can be expensive, it is a necessary investment. There are, however, numerous ways to save on insurance costs. If you raise the policy deductible, your premiums will decrease. You may be able to reduce premiums by making changes, like installing a security system or putting in a new rood. Ask your insurer to provide a complete list of ways you can reduce your policy cost.
Make sure your homeowner’s insurance policy is a “guaranteed replacement value” one. This protects the investment you have made in your home, because if your home is destroyed in a natural disaster, it will be reconstructed, regardless of the cost. Building a home increases in cost every year. This type of policy gives you a financial cushion and absorbs the increasing home-building costs, so you don’t have to.
Unexpected Damage
Try to keep all policies you have with your same provider to keep a low premium. Many insurance companies offer a discount if you have 2 or more policies with their company. As an example, protecting the home and the car under the same company will mean huge savings on both expenses.
Having homeowners insurance can save you a great deal of money should your house ever experience some unexpected damage due to a natural disaster or other random cause. If you have your home insured, it will provide money for the repair costs from unexpected damage that can come with owning a home.
An annual review of your homeowners insurance policy could lead to a considerable lowering of your premiums. In the event that you have installed any type of security or safety device such alarms or indoor sprinklers, a call to your insurance company and provisions of proof of these changes will result in substantial savings for you.
To lower your premium for homeowner’s insurance, audit your home regularly. Homeowners often pay far more for insurance than they need to, given the value of what is actually in their homes. Electronics, home appliances and other items that tend to depreciate rapidly are particularly important to keep track of. Make sure your policy is updated so that it reflects current values.
If your dog is a pit bull, Doberman, German Shepherd, Akita or another breed with a reputation for aggression, make sure that you ask how your pet will affect your home owner’s insurance premiums. Some companies will charge you more for insurance if you have breeds that are considered to be a higher risk for liabilities.
Keep these guidelines in mind when you are ready to purchase your homeowner’s insurance policy. Keep your focus the information you have just learned, then you will have enough data to make an informed decision.
If you do not smoke, your insurer may give you a discount on your homeowner’s policy. If so, you can not let anyone smoke in your home. There is a discount available through most insurance companies, but you’ll need to ask about it. This can save you anywhere from 5% to 15% on your insurance policy.