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.
Paying your mortgage off is the best way to reduce your homeowners insurance costs. Insurance companies assume that individuals who own their house will take more care of their home than people who do not. Therefore, by paying down your mortgage, you might be able to save on annual premiums.
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’s important to know how you’ll be covered if you have to live outside your home after it’s damaged or being rebuilt. 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. But, you must retain all documentation of such expenses if you are to receive reimbursement.
Inventory your home to ensure your claims go through when necessary. Anyone who has suffered a catastrophic loss will tell you how hard it is to remember everything that was in the house during a time like that. Keep pictures of the items you have in your home, including what is in your closet.
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.
Do not neglect flood insurance. Many home insurance policies do not cover floods, and flooding can occur in the most unexpected areas. Losing your house to flood waters and flood damage is very upsetting, so be certain you have insurance for that in case you have to deal with it.
To keep your coverage up to date, be sure to review your homeowner’s policy every year. Let your insurer know of changes in your home and property that may help keep your premiums down. For instance, if you have replaced a shake roof with something more fireproof, like composite shingles, you may get a premium reduction.
When looking for a homeowners insurance policy, check with the agent who insures your vehicles. A lot of agents will give you a discount if you have more than one policy with them. It is possible to get a discount of 10% or more by insuring more than one thing with the same agent.
A lot of things can destroy your house. One of these things is fire. Make sure that your policy protects you in the event of a fire and other disasters if you are prone to them in your area. Inspect your policy and talk to your agent so you can know if you have insurance for such events.
Putting in alarms can cut your home insurance premiums. Insurance companies want a secure investment and the more effort you make to keep your home safe, the better off they will be. Inform your insurance company immediately if you install these systems.
Security System
If you have other people living in your home, check your homeowner’s policy to find out what the coverage is in case of a disaster. Some polices cover everything in a dwelling, and others only cover your possessions. See what is covered to avoid making out a check to a roommate following a disaster.
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.
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.
Homeowner’s insurance is a necessary part of owning a home, even if it’s sometimes expensive. There are ways you can lower the costs. By raising your deductible, you can lower your premium. Home upgrades, like an alarm system, can also lower the costs. Check with your insurance company for a full listing of the updates and improvements that can save you money on your policy.