Just when you think you live in a safe area where nothing can damage your home, something like an earthquake can come along and literally shake your foundations to the core. This is why you need to have a solid homeowners’ insurance policy. Check out some of these great insurance tips.
There are two ways to decrease the cost of your home insurance. The first step is to have a quality security system installed. It can reduce your insurance premiums by several percentage points. However, you must prove to your insurance company that your home possesses an actual security system that is properly working. This proof can be either a bill or contract. You can also install working smoke alarms. This can save you around 10%.
Frames Cost
To save money on your homeowner’s insurance consider the costs of construction projects before you begin building. Structures with wooden frames cost more to insure because they have more risk of burning, while structures with steel frames cost less because they are sturdier and hold up under adverse weather or other conditions.
One way to reduce the cost of your homeowner’s insurance premiums is to pay off your mortgage. If you are in the position to pay off your mortgage, it is a good idea to do so. Insurance companies believe that those who own their own home will take better care of it.
When you move homes, be sure that your belongings are insured for the move. This may mean buying insurance from the moving company. Your homeowner’s insurance policy may also cover items that are damaged, lost, or stolen in transit. Check with your insurance agent about a “special perils endorsement”, which will protect valuables during a move.
When considering insurance for your home, it may be beneficial to have an alarm system installed. Not only will this be beneficial for your own safety, but your insurance rates will reflect the added security as well. After providing proof that your system is monitored by an agency, you may qualify for up to 5% off your rates.
In order to ensure your insurance claims are processed correctly, you should keep an updated list of all of your home’s contents. Those who have endured major disasters know how difficult it can be to recall all of the items that were inside their homes. The best way is to photograph everything, even your closets.
For things like homeowner’s insurance, there are things that you can do to help lower the cost of your coverage. Things like a home alarm that is monitored by a central location, can help drop your premium almost as much as 5%. You need to have proof of the alarm to show your insurance company, so you have your contract or bill of sale to show them.
Flood Insurance
A homeowner can take many actions to reduce the premium of their homeowner’s insurance policy. If you are thinking about doing construction, like a addition to your home, keep in mind that wood frames may cost less than steel or cement but the insurance could be higher.
You may think you don’t live close enough to a body of water to have to worry about flood insurance…but think again. Before you decide you don’t need it, assess the flood risk for your geographical area. You will be surprised at the unexpected parts of the country which have experienced floods in the past year or two, and if you live in or near on of these areas, flood insurance may be right for you. FEMA.gov is one site that provides information on flood risks for all parts of the U.S.
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.
To be certain your insurance costs go down, get a sound alarm system. That will deter break-ins. Your insurer will consider your home less risky and can lower your premiums. When you’ve got the alarm set up, make sure you submit proof of the system to the insurance company.
Pay off your mortgage! While you are, of course, planning to do this anyway, the sooner you complete it the better. Insurance companies firmly believe that individuals who outright own their home are much more likely to take good care of it. Because of this, they will drop the rates for anyone who pays it off.
If you have any spare money in a savings account, use it to pay off your mortgage. When you own your home outright your annual home insurance premiums can drop dramatically as insurance companies tend to assume that home-owner’s are more likely to take care of and secure their property.
Even if you don’t live in a flood plain, you may need flood insurance. A fourth of claims for floods comes from areas that are low risk. If you reside in an area that is not known for flooding, you may find this portion of your insurance cost is reduced.
Quality Insurance
Finding money-saving tips is great if you want to save big on quality insurance. Tips like you’ve just read in the article above about how to still get quality insurance while saving money are invaluable to you as a homeowner. Always make sure your house is protected and be sure to get the best insurance you can.
If you have a rommmate or two, find out what your policy says about what is covered in a disaster. Policies may cover only the possessions that you claim. Let your roommates know what is covered and give them the option to help you purchase a better policy.