When you purchase a new home, make sure you buy a home owner’s insurance policy that is the type you need. The coverage you may need varies depending on location as well as the terrain surrounding your home. Use this article for advice about making your best decision about purchasing insurance.
Keep the agency updated with a current list of items and values in the home. If disaster should occur, this list will be responsible for determining coverage values. If you have a large loss, it can be overwhelming to remember everything you had. Take pictures and video of everything in your home.
When shopping for homeowner’s insurance, be sure to get a policy that offers guaranteed replacement value insurance. This means that your policy will definitely rebuild your house if it were completely destroyed. As construction costs increase over time, it may cost more to build your house now than it did when your home was new. Guaranteed replacement policies absorb these costs.
For things like homeowner’s insurance, there are things that you can do to help lower the cost of your coverage. Things like a home alarm that is monitored by a central location, can help drop your premium almost as much as 5%. You need to have proof of the alarm to show your insurance company, so you have your contract or bill of sale to show them.
If you’re buying a new place, do not forget about getting flood insurance. Most insurance policies don’t cover floods, so you have to buy the coverage separately. Losing your home and belongings to unforeseen flooding can be a nightmare, which is why it’s important that your insurance policy covers this.
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.
As you prepare your claim, be sure to get multiple price quotes from respected contractors in advance of entering into negotiations with the insurance adjuster. Make certain to retain all receipts and documentation for any emergency work you have done in order to stave off additional losses. Money put into lodging is usually reimbursed beneath most policies.
Remember safety when you rent, to keep costs down on insurance. Installing fire extinguishers, fire detectors, security systems, etc. into your home can save you a lot of money on premium costs. Not only that, it can save your life.
At least once a year compare the cost of your homeowners insurance to that of other companies to see where the savings are. You may very well find another company offering much better rates than your own or a discount for signing up with them. If you think you can get significant savings with another insurer, call them up and tell them you might be interested and they may present you with even better numbers to obtain you as a customer.
If you can, pay off your house and you can save money. 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, in turn, allows them to offer lower premiums. Once your mortgage is fully paid, contact your agent to find out what savings you qualify for.
If you are looking to lower your homeowner’s insurance premium, you may want to consider installing a burglar alarm. An alarm monitored by a central location or through your local police may lower your annual premiums by five percent or more. Show proof of this to your insurance company, and begin seeing the benefits of lower premiums.
Make sure you have adequate additional living expense coverage on your home owner’s policy in case you are unable to live in your home due to a claim. This coverage provides funds for temporary housing and expenses due to an insured property being uninhabitable because of a claim. These living expenses can mount quickly, so carrying enough coverage on your home owner’s policy can save you expense and worry should a disaster occur.
Document the contents of your home in photographs, videotape and on paper to make any potential claims easier. If a claim happens, you will have proper proof. This kind of inventory will make the process quicker and simpler for you and your insurance company. Make sure this inventory is kept somewhere safe like a deposit box or some kind of fireproof container.
Buying the right kind of home owner’s insurance could save you a lot of headaches in the future. Because of the difference in a home’s needs by location, it is crucial that you take the time to shop around. You should also make sure that you are well informed about insurance. The advice you have just read will give you an edge.