Locations like the Midwest are at risk for tornadoes that can happen without much warning and cause massive destruction to homes. You don’t know when something like that may harm your home. Have a policy which covers you in case of disaster. Check out these insurance tips and advice for you and your home.
Reduce the costs of your insurance premiums by paying off the mortgage. Obviously this is not easy to do, but many insurance companies can reduce their rates if your house is paid off. The belief is, if you own your home outright, you will be more likely to take good care of it.
Make sure that you have a record of everything that is covered under your home insurance. Make a detailed list, and take pictures of all valuables. It also helps to keep receipts for big ticket items. There is free software online that will enable you to create a home inventory, room by room. If you need to make a claim, having all this information on hand will help to speed up the process.
Fire Suppression
If you have a family, you should evaluate your homeowners’ insurance needs as your household shrinks and your material valuables (hopefully) increase. You should always make sure that your insurance coverage doesn’t have payout limits on any valuables you own. If you have specific items you want covered, request that these are individually taken care of.
Be sure to review your policy yearly to check and see if there are any discounts available to you. This may result from additions such as a security alarm tied to a monitoring agency, a fire suppression system, and installation of additional fire alarms. There also may be items in your neighborhood that can effect it such as removal of trees or additional fire suppression outlets.
Homeowners who pay off their mortgages faster will see less costly insurance sooner. Insurance companies believe that if you own your home outright or have a greater stake in it’s equity, you will be more likely to take good care of it and keep it’s value higher. Try to increase the amount you pay each month to pay it off sooner.
A homeowner can take many actions to reduce the premium of their homeowner’s insurance policy. If you’re considering home construction, such as adding onto it, using certain materials, like wood, could raise your premiums.
When you purchase a house, give some thought to flood insurance. Flooding is generally not included in a standard homeowner’s insurance policy. It can be very upsetting to lose your home due to flood waters; ensure that this type of damage is covered through your policy.
You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.
If you’re 55, ask your insurance carrier to review your policy. Often, insurance companies offer discounts to senior citizens beginning at age 55. If your insurance provider does not offer this, it might be time to search for something new.
Smoke Alarms
Increase the number of smoke alarms in your home. Insurance companies like your homes to be safe. Putting up extra carbon monoxide and smoke alarms isn’t difficult or expensive, and it shows your insurance company that you are committed to safety.
You can lower your annual insurance premium by installing more fire alarms. Agencies are more comfortable when their customers practice safety-smart measures and installing fire alarms is a prime example. Contact your insurance provider to find out how many alarms they recommend and schedule an inspection of your home to make sure it is protected against fires.
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.
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.
You may not know that you are liable if a trespasser is injured on your property. Even uninvited guests may take you to court if they are injured on your land. Therefore, you should ensure that you have the coverage necessary to protect yourself.
This information can help you choose the right policy for your home as well help you keep your cost down. It’s better to anticipate for the worst, rather than take a gamble on your house.