Everybody who owns a home needs to insure it. Not every homeowner knows how to get the best policies and the best bargains though. Homeowner’s insurance is such a broad field and the costs are so high, just a little learning can have a very big effect. Here are a few tips to stretch your insurance dollar further.
Many times renters neglect to purchase renters insurance. While a home’s structure might be covered under the landlord’s fire insurance, the contents inside will not be. You have to purchase your own insurance to cover your personal belongings in case of theft, fire or flood.
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.
Before you buy a home, find out how much insurance runs in the area you are considering. In some locations, homeowners insurance is very high due to a number of factors. For example, if the home is located in a flood zone or an area where hurricanes are to be expected, high insurance rates are also to be expected.
Some things that your home has in it will make your insurance go up or down no matter what has happened to your home. For example, a swimming pool in your property is considered higher risk, and therefore, will raise your insurance premiums. The house’s distance from any emergency services, like fire hydrants, is also considered for your coverage. This is not discussed in order to suggest you pick a home near one of these services but to point out how some factors are included in calculating costs.
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.
There are some things that can be done to mitigate premium costs. If you are thinking about doing construction, like a addition to your home, keep in mind that wood frames may cost less than steel or cement but the insurance could be higher.
In order to protect your home and your homeowner’s insurance coverage, make sure your home has a sufficient number of working smoke alarms installed. 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.
Security System
Many things can cause damage to your house. One of these things is fire. Your insurance needs to cover fires which start by accident, arson, due to a storm or a natural disaster. You must ensure that you have coverage to protect against such damages.
Install a security system to reduce the cost of your home insurance. By installing a burglar alarm that is linked to a local police station you can decrease your home insurance annual premiums by 5% or more. Make sure that you inform your insurance company that you have a security system installed and be aware that they may ask you to provide proof.
Be sure to update your policy if you make changes to your property. If you do things such as remove a trampoline or a swimming pool or pay off your mortgage, you will see a decrease in your premium. If you add a security system it will reduce your rates as well.
Safety should come first when it comes to insurance. It is possible to save on premium costs if you install theft alarms, fire detectors and extinguishers. Make sure you invest in safety features as they can save your life, and be sure to keep them updated.
Install a security system in your home. Not only will it make you and your family feel safer and give your home some added safety from potential intruders, you will also find that it usually lowers your usual home insurance premiums. It can actually end up saving you as much as 20%.
If you are moving, check your policy. Moving can be a stressful and busy time. Even so, make sure you take the time to stop and double check what your insurance covers. If you are moving a lot of valuable things, you might want make sure that they are covered during the moving process.
Check the financial stability and health of the insurance company that you are considering for your home insurance policy. You must make sure they have the cash to pay your claim if you have to file one. Once you purchase the policy, do this every three months.
List your expensive possessions separately in order to protect them. Jewelry, furs and certain electronics may not be fully covered under the policy limit for basic possessions. If the coverage on your policy doesn’t fully cover your possessions, list the items separately to ascertain you are covered fully.
To be well protected and to make sure you receive monies coming to you from a homeowner’s insurance claim, be sure everything is well documented. This can be from taking photographs and videos of everything in and around your home, and then storing copies of these in a safe place or even at a relative’s home. Having this inventory compiled as such will help shorten the claims process.
If you can afford it, choose a homeowner’s insurance policy with a higher deductible to save yourself money on premiums. This makes sense if you have lots of savings and are able to pay small amounts out of pocket along the way instead of making insurance claims.
Hopefully these homeowner’s insurance tips have been of some benefit to you. This insurance is for helping you in case of disaster; you want to get the best, most cost-effective coverage you can. If you ever need to make a claim, you will appreciate every bit of time and effort you take to find the best deal on homeowner’s insurance now.