Shopping for home owner’s insurance is not something most people do frequently. It is essential to have a policy covering all personal needs your family has. Choosing the right insurance company and policy can be really important if you do make a claim.
Make sure that you regularly make an updated list of the contents within your home in case you ever need to make a full replacement claim. Those who have suffered an unfortunate full-loss event will attest that recalling the specifics of everything within a home is a difficult task. The easiest way is to take photos of everything in the house, including opening closets and taking a picture of everything in there.
Security System
Reducing your premiums is easy. First of all, have a security system installed. You will enjoy a reduction in your insurance premium of about 5% annually thanks to this. Keep in mind that the insurer will want proof that your security system is operational, and they may request a bill or a service contract. Also, make sure you have smoke alarms installed in the house. This could save you as much as 10% per year.
Smoke alarms should be added to every room in your house. Insurers like when you are safer since this reduces the chances they will have to pay on any claims. When you add carbon monoxide/smoke detectors to your home, your insurance company will recognize your home as being safer and a better risk for them.
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.
If you are struggling to make the monthly payments on your homeowner’s insurance, considering raising your deductible. Just like with health or auto insurance, having a higher deductible means lower risk to the insurer and lower monthly rates. However, this should only be used with homes that are not likely to suffer small maintenance issues, as the homeowner ends up with those costs.
Sometimes changes within your neighborhood can help lower your insurance premiums. Certain structures, such as a fire hydrant within a close proximity, will drop your expenses, in addition to your other savings. Find out new things going on in your area, and point out any changes to the insurance company.
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.
Before speaking with a claims adjuster about your homeowner’s insurance claims, get some repair estimates from trusted local businesses. This will give you some ammo against the insurance company when they tell you how much something will cost to repair or replace. Also, emergency repairs that you make to keep the damage from getting worse will be covered, as long as you keep receipts.
Although home owner’s insurance can be expensive, it is a necessary investment. There are, however, numerous ways to save on insurance costs. If you choose a higher deductible, your monthly rates will be less. Home upgrades, like an alarm system, can also lower the costs. Check with your insurance company for a full listing of the updates and improvements that can save you money on your policy.
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.
Risk Areas
Make sure expensive items are fully covered by separately listing them on your policy. Basic possessions are automatically included in the policy, but items like jewelry and furs may be of higher value than is included in your policy. Check your policy to determine whether your expensive items are fully covered. If not, each piece should be listed along with its value.
Flood insurance is an extra insurance type that can truly help those who live in high risk areas. It may add a bit more to your total premium costs, but it can save you from losing everything in case of a flood. High risk areas are flood insurance musts to help you protect your investments.
Be sure to install locks on all of your windows. If you do not have locks on all of your windows, you are already paying more for your home owner’s insurance. Go ahead and install locks on your windows. They are not expensive and it will, ultimately, lower what you are already paying.
If your home is paid off, it can reduce your homeowner’s insurance premiums. Insurance companies will generally offer savings once a home is paid for.
Guaranteed Replacement Cost
Select guaranteed replacement cost coverages on your home owner’s policy to make sure you are fully protected in case of damage or destruction. While coverage tied to the overall mortgage value or assessed value of the home may seem sufficient, often rebuilding a home costs more due to increases in construction and material costs. Making sure you have guaranteed replacement cost ensures your home is rebuilt should a disaster occur.
It is a good idea for new homeowners to pay 1/12 of the insurance premium into an escrow account each month. This ensures you can pay the insurance when the bill comes due.
If you put the tips from the above article to good use, you can have an easier time shopping for home owner’s insurance. Make sure that you have adequate coverage so you are not under-insured if the time should come that you need to submit a claim.