As a new home owner, you must buy a homeowner’s insurance policy. First time home buyers may have more questions than answers when it comes to these policies. Use these tips to make sure your policy properly covers you.
Your insurance rates can go up or down depending on whether someone in the family moves out, someone moves in, or your valuables appreciate or depreciate in cost. You need a second look to see if coverage limits exist on high-value items. If you want to insure certain high-cost items, then you might need to put in riders for protecting them.
To make sure that you are paying the lowest amount on your homeowner’s insurance, compare the cost of your insurance policy to another company’s policies at least once a year. You should also review your existing policy and mark any changes that may have occurred which could lower your premium.
Don’t consider buying homeowner’s insurance; just do it. You will be left without any type of aid for disasters if you don’t have the proper coverage. If your home is mortgaged, you may have no choice but to buy a homeowner’s policy, because it is likely required by the lender.
If you do not live in a flood zone, you may think you don’t need flood insurance; however, it is a good idea to purchase a policy anyway. As many as 25% of the claims made for federal disaster relief for flooding occurred outside of areas considered high-risk. You might also get a big discount on insurance should you reside in a low-to-medium risk neighborhood.
Flood Insurance
You may think you don’t live close enough to a body of water to have to worry about flood insurance…but think again. Before you decide you don’t need it, assess the flood risk for your geographical area. You will be surprised at the unexpected parts of the country which have experienced floods in the past year or two, and if you live in or near on of these areas, flood insurance may be right for you. FEMA.gov is one site that provides information on flood risks for all parts of the U.S.
If you have a rommmate or two, find out what your policy says about what is covered in a disaster. Not every policy covers everyone’s possessions. This will let you know whether you will need to pay for any damages you cause to your roommate’s items or whether your insurance company will cover them.
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.
As you prepare your claim, be sure to get multiple price quotes from respected contractors in advance of entering into negotiations with the insurance adjuster. Be sure you keep all documentation and receipts for work you did in an emergency so you don’t incur more loss. You should also keep track of any money spent on places you stay while you are waiting for your home to be fixed.
If you want to try to lower your homeowner’s insurance rates, put in some sort of security system in your home. You will get peace of mind, and most likely, a discount for your homeowner’s insurance policy. The more work you put into protecting your home means the more money you’ll save on your insurance premiums since you’ll be a lower risk. Over time, you will save as much as it cost to get the system.
Insuring a vacant house is very expensive, as a vacant property is a magnet for vandals. Vacant house insurance can cost more in a month than regular homeowners insurance costs for a year. If a family member can’t stay at the house, consider renting the property out, or exchange free rent for house sitting services to avoid having a property sit idle.
If you are turning 55, it is a good time to start shopping for a homeowner’s insurance policy or ask your carrier to review your current policy. Often, insurance companies offer discounts to senior citizens beginning at age 55. Tell your insurer you plan to shop around if they don’t offer a discount.
For those who live in earthquake zones, earthquake insurance is a smart idea. The reason is that if you do not carry earthquake insurance, and you incur damages from an earthquake, you will need to pay for the repair or replacement costs yourself.
Buying a home is a huge investment that must be protected. Homeowner’s insurance is your best form of protection – just be sure it is pertinent to your specific needs. Use these tips to shop for the best policy available.