Home owners insurance can vary greatly from company to company and even policy to policy. How much you pay will depend on the coverage options you choose. So just how does one select the coverage that is right for them? In this article, we will discuss some tips that can help.
An easy way to save on your insurance policy is to pay off your mortgage. Many insurance providers believe that those who actually own their home are more apt to care for it. The sooner you can eliminate your mortgage obligations, the sooner you can enjoy lower premiums.
To make sure that you are paying the lowest amount on your homeowner’s insurance, compare the cost of your insurance policy to another company’s policies at least once a year. You should also review your existing policy and mark any changes that may have occurred which could lower your premium.
Insurance Company
To be sure your homeowner’s insurance claim is processed correctly, have a current items inventory. It is extremely difficult to remember every item in your home whenever a catastrophe strikes. Taking photos of your home’s contents is the easiest way to recall what you own when you need to file a claim.
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.
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.
Earthquake insurance is a must for those in high-risk areas. Often, regular policies do not extend to earthquakes. Therefore, you may be out a lot of money if one strikes in your area.
If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.
Lower Deductible
Raise your deductible to lower your premiums. You have to do research, because small claims can cost you money and you have to pay them, such as leaky pipe damage and broken windows.
When considering home insurance, consider how important it is to have a higher or lower deductible. With a lower deductible, your rates will be higher throughout the year, but you’ll have to pay less for damages to your house. With a higher deductible, you keep more money in your pocket in terms of paying your premium, however most smaller claims will cost less than your deductible amount.
Before installing a pool or buying a trampoline, be sure to check with your insurance company to see what effect this will have on your premiums. Some companies will charge as much as 10% more to insure a house with a pool, trampoline or other potentially hazardous equipment on the property.
You should have your insurance put in account for escrow if you pay a mortgage. This means you will not have to scrounge around for money every month when the payment is due.
When you have homeowners insurance, about once a year you should sit down and review your policy. Maybe there are things that you have done such as installing smoke alarms, burglar alarms or a sprinkler system. If you’ve done those things and provide proof, that may help to lower your premium.
You might be able to get a discount on your homeowners insurance if you have a security system or alarm. It’s not enough to have local alarm — to qualify for the discount, you usually have to have a monitored service, and the insurance company will ask for proof of this, so make a copy of your monitoring service contract to give them.
Create an inventory of your home’s items once per year. Many homeowners always pay too much concerning their valuables. This is especially true for insurance covering appliances, technology and other valuables that have values that quickly depreciate. Be sure to update your policy to reflect today’s values.
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.
As we have discussed in this article, there are a variety of home owners insurance policies to choose from. Finding one that best meets your needs is the goal. By following the tips we have discussed, finding the coverage and price that will work for you doesn’t have to be difficult.
Companies with a good reputation for customer service are those you want to choose to insure you. A company with fast and hassle-free claims processing is well-worth their weight in gold when it comes to dealing with any losses. You can use Consumer Reports or other companies to look for reviews from other companies.