Earthquakes and floods and fires, oh my! These are just a few of the countless reasons that you need to make sure your home is protected with an insurance plan. When you need help putting together a policy, just give the tips in this article a quick read and you’ll be well on your way.
You can save money paying your home insurance if your mortgage is paid off. Insurance companies make the assumption that people who own their homes will take better care of their homes than those who don’t. If you pay off your mortgage debt, then your annual premiums will go down.
Quite a few renters are unaware of the value of carrying renter’s insurance. While your landlord may cover the building, your belongings won’t be covered. You must get a policy for yourself in case something happens, like a flood, fire or burglary.
Insurance Company
If you’re worried about flooding and you don’t live inside a designated flood area, you can research the cost of adding this kind of protection to your homeowner’s insurance coverage. It’s estimated that one fourth of flood claims are made outside of areas that are high-risk. You will also find it cheaper to get insurance for floods if the area you live in is low or medium risk.
As soon as you pay off your mortgage, contact your home insurance company. There is a good chance that you will get your premium reduced. An insurance company views someone without a mortgage in a positive light, thinking that they are more likely to take good care of their house if they own it outright.
Check the status of your homeowner’s insurance premiums at least once a year, to see if you may qualify for a lower rate. Your current rate may be based on an old crime statistic, for example, or you may have installed a security system that could lower your rates. Discuss these changes with your insurance agent.
Install additional smoke alarms in your house. Insurers love safe investments, because they lower their own risk of payouts. Installing a few more carbon monoxide and smoke detectors in your home is a smart way to prove to your insurance company that your house is a safe bet.
If you suffer damage to your home that requires a claim to your homeowner’s insurance policy, don’t hesitate to take emergency steps to protect your home. Cover any broken windows, dry out wet carpeting, and secure any valuables that survived. If further damage results from your failure to protect your home, it may be considered negligence and not be covered.
While you are preparing your claim, make sure you have a good idea of the average price of repairs from several contractors. Always save all documentation for emergency repairs you do, in case you need to make a claim. If you are unable to live in your home as a result of damages sustained, you may have to pay to stay in a hotel or motel. If so, save your receipts and submit them to your insurance company for reimbursement.
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. Using this belief, most companies offer lower annual premiums. Make sure that you communicate paying off your mortgage to the insurance company.
If you were thinking about relocating to another area, this auto insurance tip might just be the icing on the cake. If you are located in an area with a lower crime rate, you will receive favorable coverage and will ultimately pay far less per month than people who live in high-crime areas.
Higher Deductible
Check the insurance provider’s health and financial stability when looking for a homeowner’s insurance policy. You need to ensure the company will actually be able to pay if you ever have to file a claim. Regularly check your insurance company, so you can make any changes if needed.
A higher deductible on your homeowner’s insurance can save you money on premiums. While a higher deductible may mean that you will be responsible for small repair costs such as broken windows, more often than not these costs are balanced out by the savings you will receive on your annual premiums.
You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.
Raise your deductible to lower your premiums. Make sure that you know what you are getting yourself into though, regarding your claim.
Put in more smoke alarms. The safer your home is, the less premium your insurance company will charge. Putting up more carbon monoxide and smoke detectors is an easy way to prove to your insurance company that your house is not a risk.
Always do your research on a particular insurance company before signing on with them. You must be sure that the company you’re filing with is able to cover anything that you have to get fixed. Do so every quarter once you purchase the policy.
Understand that a standard homeowner’s insurance policy will not necessarily cover flood and earthquake damage. It is your responsibility to evaluate your vulnerability to these and other disasters. If you believe you are at risk, you must take the initiative to inquire about additional coverage for these areas.
Homes seem to follow the same laws of nature as anything else. If anything bad can happen, you can bet that it will happen. That’s why it’s so important that you remain covered. In the article above, you learned some great tips on how to get an affordable and high-quality insurance package. Make sure you use them.