It can happen in the blink of an eye. One minute, your house is intact. You look away from the stove for a minute, and something catches on fire. The flames spread, and you are powerless to stop the damage to your home. Are you prepared for this possibility? Learn how to protect yourself against this (and other dangers) with the following advice about homeowners insurance.
No mortgage? Lower insurance rates! Obviously this isn’t the easiest thing to do, but most insurance companies will drop their rates if you own the house outright. If you have an outright claim to your home, the insurance company will think that you will not damage it.
It’s crucial to have homeowner’s insurance. If any event happens that can damage your home and you don’t have insurance, you will be in trouble. If you still have mortgage to pay, homeowner’s insurance is probably not an option, but actually required by the loan.
When you are dealing with homeowners insurance keep in mind that some insurance companies will actually lower your premium if you get your mortgage paid off. They will think that since you own the home outright you are more likely to take better care and pride in your home.
If you are going to be 55 soon, you probably should speak with your homeowner’s insurance company, or get a review on your policy. A lot of companies will give a senior citizen a discount on home owners. If no such discount is offered, weigh your options and shop around.
Check with local agencies for renter’s coverage. Online and out of state companies generally have a one size fits all type policy structure. A local agent will be more familiar with the risks in your area and will be available to send someone out quickly to start working on your claim after a disaster.
A great way you can save on your homeowners insurance is to avoid expanding on your home too much. Sure, you can fix up those odds and ends, but putting that dream patio in your back yard or that extra bedroom on the second floor is going to cause your insurance payments to spike.
If it’s possible, pay your mortgage off to save some money on your homeowner’s insurance policy. When a person owns their home, instead of paying the mortgage every month, insurance companies see that these clients will most likely care for their homes better. This is why they reduce premiums as a result. Once you pay off your mortgage, call your agent and let them konw.
Take the time once a year to review your policy and make comparisons with other home insurance companies. You may find that the company that gave you the best premium rate last year is going to cost you more for the following year. Do not hesitate to change to another reputable company if the price and coverage is right.
Documenting and photographing your home and its contents will expedite any future claims. Make a list of all valuables in your home and take extensive pictures of the home itself, then store this evidence in a safe place such as a safe deposit box. If something ever does happen to your home you have all the data you need to back-up any claims and get them processed faster with less scrutiny from the insurance company.
Remember your insurance costs if you plan on remodeling. How much the increase is depends on the materials chosen for the project. Wood is costly to insure because it is more likely to catch on fire or experience water damage.
Always remember to make policy reviews and comparisons to your homeowner’s insurance policy yearly. You can compare your policy costs with others to find the best deal, and you should always keep track of changes that have taken place that may lower your premiums. Changes such as installing a burglar alarm or even just taking down a trampoline could lower your premiums a bit.
You should be sure the insurance company you choose to do business with is a reputable company with your best interests in mind. Check different unbiased websites to look at reviews on how claims are handled, the customer service you will receive and the promptness of the claims being paid out.
Make sure expensive items are fully covered by separately listing them on your policy. Typical homeowner’s policies cover personal possessions, though high-value things like electronics, jewelry or artwork may not be sufficiently covered under policy limits. If your policy does not cover the full value of your possessions, follow your carrier’s instructions and have items listed individually to make sure you are fully covered.
Increasing your deductible will lower the price on the insurance payments you must pay each month. This means you’ll pay for smaller claims yourself. Even though you will pay a little more, it will be worth it in the long run.
To lower your annual premiums, install up to date smoke alarms and security systems in your home. Insurance companies give significant discounts to home owners who take steps to protect their home, and these are among the most cost efficient ways to do that. Provide proof of your alarms or security system to your insurance company in order to receive your discounts.
When you buy a home, one mortgage payment option you can choose is to have one-twelfth of the annual cost for homeowner’s insurance placed into an escrow account and paid by your mortgage company to your insurance company. This makes everything automatic and saves you from scrounging.
Higher Deductible
If your homeowner’s insurance premium is too high, you can consider a policy with a higher deductible than the one that you currently have. A higher deductible will help to reduce your monthly insurance costs. The cost of small fixes will fall in your lap, but the savings will often outweigh these costs.
Be certain you have bought enough coverage for your home policy in case you need to replace your home. A disaster could happen at any time and replacing your home immediately will be critical. If you need to file a claim, make sure you consider how much building materials will cost.
Homeowners insurance can help protect you financially in case an emergency occurs. Like the scenario at the beginning of the article, your house can be damaged in the blink of an eye. Apply the advice in this article to make an informed decision about insurance for your house and property.