Obviously, first-time homebuyers are also first-time homeowner insurance buyers. This is why you need the information, more than most, if you’re not privy to how insurance companies operate. This article will shine a light on the many ways that you can find a great policy for an affordable price and keep your home protected.
All homeowners want to keep their insurance costs low. A great way to do this is paying a higher deductible. Your premiums will be smaller if your deductible is higher. Put enough money aside to cover your deductible and avoid filing small claims if you can pay for repairs yourself.
When you are going to purchase homeowners insurance there are certain things that you should look for in a policy. A good thing to have is guaranteed replacement value insurance. This means that no matter the cost your home will be rebuilt if a disaster were to happen. Most people think this is automatic, however, since home values increased it probably would cost more now than what you had originally paid for the home. This way you are covered.
Flood Insurance
If you’re buying a new place, do not forget about getting flood insurance. Flooding is generally not included in a standard homeowner’s insurance policy. It can be very upsetting to lose your home due to flood waters; ensure that this type of damage is covered through your policy.
Even though you aren’t in an area that’s prone to flooding, you still may need flood insurance. 25% of all federal claims are for flooding outside of high-risk zones. If your home is located in an area with low or medium risk for floods, your flood insurance cost can be heavily discounted.
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.
Be sure to let you insurance agent know if you are approaching your 55th birthday. This may save you some money on your existing policy or make you eligible for a better policy. 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. You should shop around if your insurer doesn’t offer this type of discount.
Insurance Policy
A home security system remains a reliable way to reduce the overall cost of your homeowner’s insurance policy. You will get peace of mind, and most likely, a discount for your homeowner’s insurance policy. When you take responsibility to keep protect your belongings, the insurance company will see your risk go down and charge you less. The monies you save on premiums will soon cover the cost of your security system.
One way to score 10 percent savings on your yearly premiums is to ensure that you have multiple working fire alarms in the house. Smoke detectors and alarms make your home seem less risky to insure. Some companies provide an even bigger discount when homes have many fire alarms.
You should consider the increase in home insurance that you will face if you invest in a swimming pool or trampoline for your property. These items are deemed risky and will likely raise the cost of your premiums by roughly ten percent or even more for the year.
Add extra smoke alarms to your home to reduce your insurance premiums. Adding smoke alarms can reduce your yearly premiums by as much as 10 percent. Depending on your insurance company, you may even qualify for additional discounts for adding more smoke alarms than the minimum required to receive the discount. You not only save money, but you protect the lives of everyone in your family.
Homeowner’s insurance is an expensive but necessary investment. There are many ways that you can reduce the expense. Raising your deductible may lower your premium. You may be able to reduce premiums by making changes, like installing a security system or putting in a new rood. You need to ask your insurance company what things you can do to make changes in your home that will allow you to pay less on your insurance.
Fire Extinguishers
Keep one or two fire extinguishers in the kitchen and around the house. Depending on your home owner’s insurance provider, having functioning fire extinguishers handy might lower your rates. It is also great to have one handy in the event of a fire. They could end up saving your life.
In order to make potential claims run smoothly, document your home and belongings on paper, in pictures and video. Anytime a claim occurs, your insurance company will require for you to demonstrate proof of your belongings. A detailed inventory allows the entire process to flow more quickly. Place your documentation in a safe deposit box or a fire-proof box.
Every homeowner out there should understand that it’s very important that they have some type of insurance policy covering their home. Homes are simply too large of an investment to remain unprotected. If you can put these tips into action, you can find a great deal on a solid home policy.