Your home is one of your most valuable assets, and it is important to protect that asset with good insurance. But how can you be sure you have a good homeowner’s insurance policy? And how do you know what you should avoid? These tips will give you the information you need to make good insurance choices.
Learn what your insurance policy covers when it comes to living off-site. A lot of times, your insurance will pay for you to stay in a hotel temporarily, but not always. That said, you have to keep receipts and provide them to the insurer.
The types of material your home or outbuildings are made of can seriously impact the amount you pay to insure them. Having something that is wood framed will cost you more because it is more flammable. Building with cement and steel will be less likely to burn, and therefore cost you less to insure.
To protect your personal property in a rented residence, you need renter’s insurance. The landlord or property owner will have insurance to cover losses on the building, but not on the items inside your unit. This is your responsibility. Fortunately, renter’s insurance is quite affordable, and available from most insurance companies and independent agents.
A lot of things can destroy your house. Fire is one factor. You need a good policy that insures fire in case your home is damaged by human error, wildfire, arson, cars, storms or even earthquakes. Go over your policy so you can ask specific questions to your insurance agent if you are not sure what your insurance covers.
Federal Disaster
If you live in a flood-prone area, never assume that you can rely solely on federal disaster assistance rather than purchasing flood insurance coverage. In the first place, a large percentage of all flooding incidents never qualify for federal disaster relief. Secondly, you may pay more in interest for a federal disaster loan than you would pay for flood insurance.
When you rent, being safe means reducing the premiums on your insurance. You can receive significant premium discounts by installing fire detectors, fire extinguishers and/or burglar alarms. Not only will these things save you money, but they can just as easily save your life and that is something you cannot put a price on.
If you want to be sure your home and belongings are covered in the event of a flood, the time to buy flood insurance is not the moment it begins to rain. Most flood insurance plans will not cover flood damage incurred within the first 30 days of purchase, so you need to make that call today, rather than putting it off.
Save on homeowner’s insurance by installing additional smoke detectors. Smoke detectors are required in most new homes, however voluntarily installing them in older homes or installing additional detectors in a new home can get you further discounts. Not only is this a smart monetary decision, but it is one that could save the lives of you or your loved ones.
Simply installing a fire alarm may decrease your payment by 10% per year. Your insurance provider will consider the risks of fire as much lower if you have a good alarm system. There are certain insurance companies that will give a homeowner an even bigger premium discount if they install numerous fire alarms.
Make sure to take photos or to take a video of everything in your home so that you can create claims more easily. By keeping your records in a safe place and anticipating that you’ll have to provide such records to your insurance carrier in the event of loss, you’ll greatly expedite your insurance claim process. Your careful planning and documentation will make filing a claim easier, quicker and more efficient. Consider purchasing a safe deposit box or a fire box to keep your documentation safe.
If you wish to have lower yearly premium payments when dealing with your homeowner’s insurance, raising your deductible can help. However, remember that small claims such as a broken window will not be paid for by your insurance company.
You need to think about the cost of insurance when you are going to remodel. Adding on to your home can increase insurance costs, and the amount of increase will depend upon what is used to build or remodel. Wood structures are more expensive to insure as opposed to steel or cement structures since they are damaged easier.
If you have an older home, consider upgrading or modernizing heating and plumbing systems to decrease your home owner’s insurance premiums. These improvements can reduce risk of electrical fire or water damage, making it possible to lower your insurance costs. At the same time, these improvements can make your home safer and increase the value of your property.
Insurance Policy
If you reside in an area that is at risk for flooding or mudslides, consider looking into supplemental flood insurance. Since the majority of homeowner’s insurance policies do not cover floods, you will have to get this type of coverage from the federal government.
It’s important to take the time to assure your homeowner’s insurance policy is a good one. Now that you’ve read this article, you have advice that will guide you through the insurance process. Take time to review your insurance policy from time to time. Protect one of your most valuable assets!