Your contents can be covered under your insurance policy. Items like valuable paintings and high-end electronics can be covered. Read all of these pointers before making any choices, so that you can be sure to save the most money possible.
Be sure to purchase your homeowners’ insurance in a timely manner. You could lose everything, in the event of an emergency, without this insurance. Homeowner’s insurance is usually required if you hold a mortgage.
Frames Cost
To save money on your homeowner’s insurance consider the costs of construction projects before you begin building. Structures with wooden frames cost more to insure because they have more risk of burning, while structures with steel frames cost less because they are sturdier and hold up under adverse weather or other conditions.
Your valuables will prove to be challenging to replace in an insurance claim if the items are not photographed in color and documented. It isn’t simple, but the work is worth it when the worst happens.
If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.
When you move homes, be sure that your belongings are insured for the move. This may mean buying insurance from the moving company. Your homeowner’s insurance policy may also cover items that are damaged, lost, or stolen in transit. Check with your insurance agent about a “special perils endorsement”, which will protect valuables during a move.
Install additional smoke alarms in your house. Insurance companies love safe homes, since there is a reduced chance of them having to pay out. 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.
Make sure you have enough smoke detectors installed in your home. Older homes especially may need additional ones in order to get a better homeowners insurance premium. Even some newer homes can benefit financially from adding additional detectors apart from those necessary to meet the requirements.
To save money on your homeowners insurance, you should pay off the mortgage as soon as possible. Most companies will consider you a smaller risk when there is no debt against a property and you will take better care of the property. Look into how much faster you can pay the loan off, by refinancing at 15 years instead of 30.
Pay your mortgage as quickly as possible to benefit from lower premiums. Insurance companies are more trusting of people who own their homes, believing they will take better care of it. Therefore, many insurers provide significant premium discounts as a result. Gather those savings by calling your agent as soon as the mortgage is fully paid.
Your valuable items, like electronics and jewelry, might be hard to recoup costs for in a claim if you have not made the effort to prove they exist with photographs or video. It takes some time and effort, but the only way your insurance company can get a good idea of what you have had damaged, lost or stolen is with a good photo record that will help to show what the accurate replacement value of your goods is.
Flood Insurance
If your neighborhood has been changing, your premiums might be reduced. Things such as new fire hydrants or fire stations near your home will result in lower rates. Find out new things going on in your area, and point out any changes to the insurance company.
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.
It should be obvious that the larger your coverage, the more cash you should expect to pay. However, there are many ways to save money on your homeowner’s insurance policy. Just go over the tips again, and you’ll be saving money in no time.
If you want to reduce your homeowner’s insurance cost, consider switching to a higher deductible. Always research first; you may spend more money by making the claim.