Have you recently bought a home and purchased home owner’s insurance? Maybe you own a home and you have yet to purchase insurance for it. Either way, it is important that you are well-informed about the ins and outs of home insurance. The following article is going to give you some of that knowledge.
When you comparison shop for homeowner’s insurance, make sure you let insurers know you have installed a security system at your house. A security service and system for your home that is monitored remotely can effectively reduce your insurance premiums by 5% or more monthly.
Have your financial house in order before you try and enter into a real estate transaction. Check your credit report and credit score from the three major credit bureaus. If there are any inaccuracies, you will want to have those fixed. Unexpected hiccups in your financing can derail a purchase you are about to make.
Homeowner’s insurance shouldn’t be up for consideration, you should go out and buy it. If any event happens that can damage your home and you don’t have insurance, you will be in trouble. If you are currently paying for a mortgage, it could be that the loan terms state you must get homeowner’s insurance whether you like it or not.
Flood insurance may not be at the forefront of your mind when it comes to insuring your home, but it can be a good idea even if you don’t live in a flood plain. About a quarter of all disaster flood claims are from places that are not in traditional high-risk areas. If you are in a low-to-medium risk flood zone, you may get a good flood insurance discount.
After purchasing your homeowner’s insurance policy, go around your home and take photographs of your belongings so you have a visual inventory. Store these photos in a fireproof safe or at a relative’s house. These photographs will help the insurance company document your claims, and help you get your money faster.
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.
Safety is key when lowering costs on renter’s insurance. Having burglar alarms, fire extinguishers, and fire detectors on property can lower your premiums. Keep these items updated and know how you should use them.
Flood Insurance
You may think you don’t live close enough to a body of water to have to worry about flood insurance…but think again. Before you decide you don’t need it, assess the flood risk for your geographical area. You will be surprised at the unexpected parts of the country which have experienced floods in the past year or two, and if you live in or near on of these areas, flood insurance may be right for you. FEMA.gov is one site that provides information on flood risks for all parts of the U.S.
When you have no mortgage, your premiums will go down. A person who owns their home without a mortgage is viewed by insurance companies as being more likely to properly care for their home. This will help reduce the cost of the premiums. When you finally pay your mortgage, call your insurance companies to start saving.
An alarm system is a great way to lower insurance costs. An alarm system will reduce the likelihood that your home will be broken into. It will even lower the cost of your home insurance, as it alleviates a lot of risk for the insurance company. Send your insurer the receipt for installation, and they’ll reduce your premiums.
Guaranteed Replacement Value
Your neighborhood may have added in new features that might lower your home insurance premiums. For example, your rates may be lower if you live within one hundred feet from a fire hydrant. Rates can also be affected by your proximity to a fire station. Look at new local developments often and report changes.
Consider a policy that offers guaranteed replacement value when shopping for home owners insurance. Guaranteed replacement value means that if your home is destroyed the insurance company will pay the cost to rebuild it, regardless of what that cost is. Considering that the cost of construction often increases over the years, this is especially important if you will be in your home long term. Having such a cushion can offer you true peace of mind.
Get an estimate of damages to your home prior to filing a claim on your home owners insurance. If it is not going to cost you much more than the deductible to repair, do not file the claim. Each claim that you file will cause your premium to increase for the year.
If you are thinking about remodeling your home, find out how much your insurance will be. Extensions or extra rooms will end up costing you more money on your policy. For example, concrete or steel framework can save on insurance premiums. Wood, on the other hand, is more costly because of possible damage due to inclement weather or fire.
In conclusion, whether you are an insured home owner or if you have yet to get home insurance, it is wise to be well informed on the subject. Use the information given to you in the above article to make sure you have the best home owner’s insurance possible.