There are many, many reasons that you need to be protected by insurance as a homeowner. Even if someone is trespassing on your property and gets attacked by your dog, you could be on the hook for the hospital bills. It’s crazy, yes, but that’s how the system works. Use these insurance tips to make sure you’re always protected.
There are a couple ways to get lower homeowners insurance. First of all, have a security system installed. This can reduce your premiums by five percent. However, remember to contact your agency and provide proof of the new installation before expecting to see a change. Next, make sure you have smoke alarms all around your home. You can save up to 10% each year.
What would do you do if your home was destroyed in a natural disaster and needs to be rebuilt? If you purchased your homeowner’s insurance years ago, the cost of construction and materials may have gone up. For this reason it is important to make sure you buy a Guaranteed Replacement Value Insurance premium which will guarantee that your home will be rebuilt regardless of the cost.
Before speaking with a claims adjuster about your homeowner’s insurance claims, get some repair estimates from trusted local businesses. This will give you some ammo against the insurance company when they tell you how much something will cost to repair or replace. Also, emergency repairs that you make to keep the damage from getting worse will be covered, as long as you keep receipts.
Pay down your mortgage to limit how much you pay for homeowner’s insurance. Although this is difficult, many insurance companies increase premiums whenever you actually own your home outright. Insurance agencies prefer customers who actually own their residence and will reward such individuals.
There are steps to take to reduce your homeowner’s insurance premiums. If you want to put a new addition on, remember that steel and cement cost more but the insurance may be lower than if you get wood frames.
Get price quotes from area businesses before dealing with any claims adjuster during an insurance claim. Make certain to retain all receipts and documentation for any emergency work you have done in order to stave off additional losses. Keep track of how much you spend on temporary living accommodations too if your insurance covers these expenses.
While you may live in an area not frequently flooded, weigh the cost of flood insurance against the possibility of flooding. Roughly 25% of federal disaster claims due to floods originate in areas not designated as flood risks. You may be able to get lower rates on your flood insurance if your home is in a lower risk area.
To avoid an increase in your homeowner’s insurance rate, you should avoid submitting small claims. Some insurers take even small claims into account when figuring if they want to keep you as a policyholder, and you might find yourself uninsured for the big things because you wanted to be be reimbursed for a relatively small amount.
If your home is damaged in a fire or other disaster, you’ll need a place to stay until it is repaired. Find out if your homeowner’s insurance covers hotel stays or other lodging. Read your policy carefully to determine if you’re covered, and find how much you’d have to spend to get this coverage if you aren’t.
If you have a rommmate or two, find out what your policy says about what is covered in a disaster. It may only cover your belongings, or it could take care of everything. 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 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.
Check any policy that you are interested in for a “guaranteed replacement value” and only accept the contract if it is applicable. This guarantee prevents your lost home from being replaced with a mobile home. If your home is destroyed, your insurance policy should cover everything it takes to rebuild your home or find a home of equal value.
Consider paying off your mortgage before seeking out homeowner’s insurance. When your mortgage is paid off, be sure to inform your agent. A home which is fully owned appears to be more cared for than one which is under mortgage to insurers.
Just about anything can happen and leave you on the hook for some big bucks. Unless you’re protected, you could end up losing your house for multiple reasons. Follow these tips and use them to work up a solid insurance policy that’s affordable and that provides ample protection for your home.
You can make sure that your most expensive belongings are protected by specifically listing them in the policy or adding them in the form of an endorsement. On a homeowners policy, basic possessions are included but high-value items such as furs, jewelry or electronics may have a policy limit insufficient to item value. In this case, you will need to add them in individually.