Home owner’s insurance isn’t a luxury, it’s a necessity. It may even be required if you have a mortgage on your home. In the case of a disaster, your home owner’s insurance might be the only thing that gets you back on your feet. Here are some tips that can help you in selecting a home owner’s insurance policy that suits your needs.
If you need to live away from home because your house is not longer habitable, make sure you are aware in advance of what costs are covered by insurance. Should your house sustains so much damage that you can no longer live in it, your policy may give you a daily living allowance until you can return to your home. However, you should save all receipts and keep careful records if you want to be properly reimbursed.
To make sure that you are paying the lowest amount on your homeowner’s insurance, compare the cost of your insurance policy to another company’s policies at least once a year. You should also review your existing policy and mark any changes that may have occurred which could lower your premium.
If you are struggling to make the monthly payments on your homeowner’s insurance, considering raising your deductible. Just like with health or auto insurance, having a higher deductible means lower risk to the insurer and lower monthly rates. However, this should only be used with homes that are not likely to suffer small maintenance issues, as the homeowner ends up with those costs.
It can be extremely difficult to replace your valuable items in a claim if you aren’t documenting all of them with pictures. Documenting all your possessions takes a lot of time, but it is the only way to make sure you will get what these items are worth if they are damaged or stolen.
When considering insurance for your home, keep in mind that having your mortgage paid off can actually effect your premium amount. Insurance companies will commonly reward you with a lower premium if your mortgage is paid off, because it is generally thought that a home will be better taken care of if it is fully owned.
If you need to live away from home because your house is not longer habitable, make sure you are aware in advance of what costs are covered by insurance. If your house is damaged to the point that you cannot live there while it is being fixed, it’s good to know if your insurance company will pay for you to live somewhere else during that time. It’s important to note that you will need to save every single receipt when you live elsewhere, or you will not be able to prove you paid for the expenses.
Regardless of maintenance, features of your home will determine how much you pay for insurance. If your property has a swimming pool on it, that pool will always create higher homeowner’s insurance costs than insurance for property without a pool. If your home is far from fire hydrants or emergency services, it can end up driving up the costs of your policy. This does not mean that you should choose a home based on insurance costs only, but this is one of the things that can impact your costs.
Homeowners Insurance
If you have expensive landscaping around your home, consider purchasing separate insurance for it. Most basic homeowners insurance policies will not cover damage from wind or other environmental factors to landscaping. This means that if your expensive imported trees come down in the wind, your homeowners insurance policy will generally not cover it.
Never forget the importance of flood insurance when purchasing a home. Flooding is not typically covered by homeowner’s insurance, and due to recent events, it is clear that floods can happen in areas you don’t expect. Losing your house to a flood is very upsetting, so be sure your policy can cover the damages if it happens.
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.
Getting an alarm system that works well can save you a lot in insurance premiums. This decreases the chances of someone breaking into your home. Your home owners insurance may think you are not an at-risk home and decrease your insurance. Remember to send your company proof of your new security.
If you’re in a living situation where roommates are involved, you need to check your insurance policy to learn whether their belongings are covered. You may find your belongings are covered, but their belongings are not. Knowing this information in advance can spare you a great deal of expenses and grief in the event of a disaster.
Security System
Install a security system to help lower your homeowner’s insurance premium by 5%. Your security system must be watched over by a central station or tied directly to your local police station, in order to get this discount. Your insurance agent will want to see proof that your security system is being monitored.
Pay your mortgage in full before getting an insurance policy. This will help you save a bundle on your insurance premiums. A home that is owned outright is considered a lower risk because full owners tend to care for their homes well.
As mentioned above, a home owner’s insurance policy is a necessary safety net in case of fire, theft, or other disasters. Having a good home owner’s insurance policy in place will benefit you in case the worst occurs. Having read the advice in this article, you should be better prepared when selecting a home owner’s insurance policy.