Obtaining homeowner’s insurance for your property can become a daunting task with all of the buzzwords and foreign concepts that float around. Understanding what you need out of your home insurance contract can cut down on the cost, as well as the hassle. You should keep the following items in mind when you start to shop around.
Know about displacement and living off the premises in regards to claims and your insurance policy. Sometimes, if the home is unlivable, you may be able to claim some of your accommodation expenses through your insurance policy. You will definitely need your receipts to show for proof.
Insurance Policy
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.
With members moving in or out, and valuables increasing and decreasing, your needs must be monitored. You should check through your policy to ensure that high-value jewelry is covered. If you have a specific valuable possession you want covered, you can opt for a rider for that item to protect it in the case of theft.
To save money when buying homeowners insurance, consider putting an alarm system in. Most major underwriters will give a discount for a home that has a monitored alarm installed. Many times the discount you get will add up to more than what you pay for the monthly monitoring cost.
A lot of homeowners want to keep their insurance premiums low every year. One way to do so is to choose a policy with a higher deductible. Your premiums will be smaller if you increase your deductible. Put enough money aside to cover your deductible and avoid filing small claims if you can pay for repairs yourself.
Homes can be damaged by many things. One of these is fire. Be certain that your insurance has a fire policy that will protect your investment in case of fires due to storms, arson, human error and even earthquakes. Read the policy and ask any questions to be certain your policy protects you from these things.
Paying off your mortgage may not be easy, but doing so can make your homeowner’s insurance premiums drop significantly. Insurance companies assume that people who own their houses outright are more likely to take good care of them, and so they will file fewer claims that the insurance company will have to pay.
If you want to insure your home against flooding, you’ll need a flood insurance policy. Flooding is not covered by most regular homeowner’s insurance policies. Protection against flooding covers damage from things like too much rain, creeks rising, landslides and more. If you think you need this additional coverage, speak to your agent, who will explain options and costs for your area.
Insurance premiums drop when you add a security system to your home. These systems are often inexpensive to install, but can give you peace of mind whether you are home alone or away on vacation.
Flood Insurance
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.
If you have other people living in your home, check your homeowner’s policy to find out what the coverage is in case of a disaster. Sometimes the policy can cover everything, and other times it can cover just you. Find out what is covered, or you might have to write a check to your roommate when a disaster is over.
Putting an addition onto your home will increase your homeowner’s insurance rates because there’s now more home to insure. Minimize the increase by being smart with your building choices. If you can arrange for steel-framed construction, you may be able to pay less by choosing this less-flammable material. Consider the new roof’s fire rating as well.
Stay away from pools and trampolines. While your kids may love to jump on the trampoline or swim in the pool, these little extras are insurance nightmares. Insurance companies will up to double the rates of a homeowner who installs either of these items. Stay away from extras with the potential to harm!
Choose a policy that contains “guaranteed replacement value”. You don’t want to end up in a trailer instead of a home similar to the one you have been paying for, for years. This insurance usually will typically pay for a home that’s worth the same amount as your destroyed home.
Investing in a quality alarm or tracking device is a good way to lower your premiums. The more protected and secure your property is, the less likely your insurer will have to pay out as much money. Tell your company, the minute you install these safety features and they may lower your premiums immediately.
The internet is an excellent resource for information on home insurance options. It’s wise to brush up on some of the language before speaking directly to a home insurance agent. Be ready to ask for what you need, and feel confident insisting on only paying for what you ask for.
Install a security system that is monitored. This not only ensures a secure home for your family, but your homeowner’s policy will be reduced by 5 percent or more. You have to send proof of monitoring to the insurer to get this discount.