Before you even purchased a home, chances are you understood that they can be rather expensive and they are extremely important. The chances of an accident occurring are pretty high as well and without home owner’s insurance you can be left in the dust with nothing but damage, bills, and no support to lead you through it.
Paying off a home mortgage can help you save on your policy. When you own your home outright, an insurance company feels you are more likely to take care of it and protect it. Paying off mortgage debt decreases your annual premiums.
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.
Stay away from pools and trampolines. While your kids may love to jump on the trampoline or swim in the pool, these little extras are insurance nightmares. Insurance companies will up to double the rates of a homeowner who installs either of these items. Stay away from extras with the potential to harm!
Pay off any mortgages associated with the residence and a percentage of your yearly premium will vanish. Your rates will go down significantly if insurance companies see you have more stake in your home. Insurance companies reward homeowners who own their home free and clear.
Create a comprehensive list of the valuables that are in your home, and provide a copy to your insurance agent. Take pictures of your items, and have them stored somewhere away from your home. Confirm with your agent that all of these items will be covered, and make sure to update your agent on new valuable purchases that should be covered.
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.
Consider asking your insurance agent for a home owner’s policy review once you reach the age of 55. Many companies offer discounts for senior citizens, starting with folks who are only 55. Look for a different policy elsewhere if your current one doesn’t offer the discount.
When you are filing for fire insurance, make sure your policy covers damage sustained to cars during a fire. Many people do not do this and end up having to pay for car damages after a fire. If your car does happened to get damaged, make sure to put the type and amount of damages on your claim.
For people that live in earthquake-prone areas, they should get earthquake insurance. This is because if an earthquake occurs and you do not have this kind of insurance, you will be stuck having to pay for repairs to your home and replace your possessions that have been damaged.
Quality alarm systems will lower your yearly premiums. Your insurance company wants to make sure their investment is secure. After safety features are installed, premiums should be lowered.
Unexpected Damage
Having homeowners insurance can save you a great deal of money should your house ever experience some unexpected damage due to a natural disaster or other random cause. If you have your home insured, it will provide money for the repair costs from unexpected damage that can come with owning a home.
Spending money to install a security system on your home is an excellent way to save money on your insurance. Your home will be safe and your premiums will drop. Protect your investment in your home, and your insurance company will reward you with discounts on your premium. The amount you save on premiums will soon pay for your security system.
If you happen to live in an area that is prone to flooding or mudslides, it is important to inquire about buying supplemental flood insurance. A lot of standard policies don’t cover flood damage, but you can often get a policy through the government to cover floods and mudslide damages.
If your budget allows for you to assume the risk of a higher deductible for your insurance coverage, then your premiums can be substantially lower. If you’ve got a solid emergency fund, this can be a good idea since you can pay for small damages yourself and let the policy worry about large damages.
Earthquake insurance is a must in areas prone to earthquakes. Most homeowner’s insurance does not cover earthquakes, so you will need to purchase an additional policy.
You need to remember that you must insure your home, but not the land it sits on. If you purchase coverage for the market value of your home, including the land, you have probably purchased more than you need. Even after a natural disaster, the land will still be there, it is your home that you must insure and protect.
While your homeowners policy may protect you in the event of a fire, burglary, or natural disaster, such as an earthquake, it may not cover you for flooding, mold or other common disasters. Make sure you know what you are getting and what additional coverage you may need to purchase separately.
You should also ensure you have enough money to cover all rebuilding costs. Construction costs will increase over time and your coverage should be updated to reflect these changes. Keep this in mind so you will have enough money if something happens. Be sure to be prepared before something bad occurs.
No one is safe forever and the procrastinating mentality can only lead to more suffering. There is no reason to avoid spending a little money each month to keep yourself from paying huge sums in the instance of an accident. Protecting your home should always be at the top of your list and home owner’s insurance can do this.