Obtaining insurance for your home can be a daunting challenge. With so many clauses, contingencies and contracts, not to mention the magnitude of what is at stake for you, it is simply overwhelming. Read on to learn how to navigate your way through the maze of homeowners insurance and be able to make your decision based on knowledge and facts with complete confidence.
There are two ways to decrease the cost of your home insurance. The first thing you should do is put a security system in place. This can reduce your premiums by five percent. Just remember that you will need to give your insurance company documentation that you’ve installed a security system. This may mean presenting them with a bill or contract. Second, install smoke alarms throughout your home. That will save you about 10% each year.
Homeowners Insurance
When shopping for homeowners insurance, saving money is key. Having devices such as smoke alarms, carbon monoxide detectors, and monitored home security alarms in place can offer great discounts. Remember to discuss these (and other) safety devices with your agent when negotiating your next homeowners insurance policy.
Make sure you understand your coverage when it comes to temporary living expenses. Sometimes policies cover expenses related to temporary living arrangements in the event of significant damage to your home. However, you should save all receipts and keep careful records if you want to be properly reimbursed.
Even if renter’s insurance isn’t mandated where you are living, it is highly recommended. You simply never know what is going to happen. Renter’s insurance covers all your valuables in the case of some disaster like a fire or a flood.
Many home owners have a hard time keeping their premiums down. One way to lower premiums is to increase your deductible. Premiums will be smaller when the deductible is bigger. However, if you go this route, check that you have sufficient money in the bank to cover small repairs that you will have to pay out of pocket.
A current copy of your personal inventory must be obtained to be sure that any claims are processed properly. If you have had a big loss before, you know how hard it can be to remember your possessions. Take pictures of the contents of your home (remember cabinets and closets) for the most accurate record.
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.
Create a comprehensive list of the valuables that are in your home, and provide a copy to your insurance agent. Take pictures of your items, and have them stored somewhere away from your home. Confirm with your agent that all of these items will be covered, and make sure to update your agent on new valuable purchases that should be covered.
As the size of your family and personal possessions change, you should re-evaluate what you need from your homeowner’s insurance. You should look over your policy to determine if any coverage limits on valuable items exist. If there are specific individual items that you would like to make sure get covered, you can request an individual rider to make sure those items are protected against theft.
Deduct the value of the land that your home is built on. It is quite expensive and needless to cover the land that it is built on. You will save a good bit of money just by finding out the land’s worth and deducting it from the amount that you are covering on your home insurance policy.
Make sure that every exterior door on your home has dead bolt locks. Depending on your insurance provider, this might lower your home owner’s insurance premiums slightly. They also make a great deterrent against would be thieves or other intruders. They are inexpensive to install and a great way to keep your home safe.
Flood insurance may not seem necessary if you don’t live in a high-risk area, but it could be a good idea anyway. Circumstances that create flooding can damage homes that are outside traditionally designated flood areas. This will require homeowner’s without flood insurance to seek some other sort of coverage or disaster relief. You can get a great discount on your flood insurance if you’re in a medium or low-risk areas.
Educate yourself regularly on current home owner’s insurance rates. The rates for insurance are often changing. This means your coverage and what you are paying for it, could constantly be changing as well. Make sure you stay abreast of what is going on with your policy, in order to avoid paying too much or not getting enough coverage.
Hopefully you are now well prepared to take on the challenges of finding the right homeowners policy for you and your needs. Arming yourself with knowledge is always the best approach and insurance is no different. Keep a little notepad handy as you endeavor your selection and shop around for the best policy. Hold every company and what they offer up to a standard of excellence that serve your needs as a home owner best.
You will save quite a bit on your homeowners insurance when you invest in a security system. In addition to feeling more secure, you will be saving money. The more you do to protect your investment, the less of a risk you become, lowering your premium significantly. Your savings on insurance premiums will usually pay for most, if not all, of your security system’s cost.