It can happen in the blink of an eye. One minute, your house is intact. You look away from the stove for a minute, and something catches on fire. The flames spread, and you are powerless to stop the damage to your home. Are you prepared for this possibility? Learn how to protect yourself against this (and other dangers) with the following advice about homeowners insurance.
There are two ways to decrease the cost of your home insurance. First, put a security system in. You’ll see that this can actually lower the cost of your insurance by up to 5%! Remember that you have to show the insurance company proof you have a security system, like a bill or a contract. The second thing is to put smoke detectors around your home. Doing this can save up to 10% every year on your premiums.
When shopping around for homeowner’s insurance rates, be sure to mention any safety-related improvements that you’ve made, especially if it’s an older home. Simply installing a smoke alarm on each floor of your home will not only protect your life in case of a fire, it could save you up to ten percent annually on homeowner’s insurance.
Guaranteed Replacement
Your homeowner’s insurance costs can decrease if your mortgage is paid off in its entirety. Your rates will go down significantly if insurance companies see you have more stake in your home. Insurance companies reward homeowners who own their home free and clear.
When shopping for homeowner’s insurance, be sure to get a policy that offers guaranteed replacement value insurance. This means that your policy will definitely rebuild your house if it were completely destroyed. As construction costs increase over time, it may cost more to build your house now than it did when your home was new. Guaranteed replacement policies absorb these costs.
Make sure you have homeowner’s insurance that includes a guaranteed replacement value policy. Doing so means that the insurance company will have to cover the whole cost of rebuilding your home in case of disaster. Since these costs tend to rise as time goes by, this policy will guarantee that you can afford to replace your home.
Alarm systems are a great way to reduce your homeowners insurance premiums. This will help to safeguard your home at all times. Your insurance company won’t consider your home a risk and you will get lower insurance premiums. Give your insurance company proof of your security system.
Some features of your home will have an impact on your homeowner’s insurance costs, no matter how well you maintain your home. For example, owning a pool will increase your insurance costs, due to the increase in liability. The farther you live away from emergency resources like fire hydrants, the higher your premium will be. Keep this in mind as you shop for a home.
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.
Spending money to install a security system on your home is an excellent way to save money on your insurance. You will receive both a savings on your insurance, as well as peace of mind. By working to protect your home yourself, you pose a smaller risk to insurers, which will reduce your premium costs. By saving enough on premiums, your security system might even pay for itself.
Smoke Alarms
Put in more smoke alarms. Home insurance providers want your house to be safe. This reduces the risks that something will go wrong. Putting up extra carbon monoxide and smoke alarms isn’t difficult or expensive, and it shows your insurance company that you are committed to safety.
If possible, pay off your mortgage to save money on your home owner’s insurance. Insurance companies are more trusting of people who own their homes, believing they will take better care of it. You are viewed as less of a risk, so your insurer may reward you with a discount on your yearly premiums. Once you have paid your mortgage in its entirety, contact an insurance agent in order to realize the discounts.
When you rent, being safe means reducing the premiums on your insurance. You can receive significant premium discounts by installing fire detectors, fire extinguishers and/or burglar alarms. You might also save lives this way, so it makes sense to get such protections and learn how they are used.
Consider a policy that offers guaranteed replacement value when shopping for home owners insurance. Guaranteed replacement value means that if your home is destroyed the insurance company will pay the cost to rebuild it, regardless of what that cost is. Considering that the cost of construction often increases over the years, this is especially important if you will be in your home long term. Having such a cushion can offer you true peace of mind.
When you buy a home, one mortgage payment option you can choose is to have one-twelfth of the annual cost for homeowner’s insurance placed into an escrow account and paid by your mortgage company to your insurance company. This can help make it easier to pay your premiums each month.
Homeowners insurance can help protect you financially in case an emergency occurs. Like the scenario at the beginning of the article, your house can be damaged in the blink of an eye. Apply the advice in this article to make an informed decision about insurance for your house and property.