Sometimes it’s a wise move to bundle up your policies in order to save money on your insurance, and other times you want to have separate policies. It can all be a bit confusing based on your particular needs, so be sure that you’re using the tips provided in this article to help you shop for homeowners’ insurance.
Pay out your mortgage if you want a discount on your home insurance. Your rates will go down significantly if insurance companies see you have more stake in your home. They think that if you fully own the home, you will maintain it better.
The importance of renters insurance can easily be overlooked and this is a mistake. While the actual structure of your existing home will be protected by the fire insurance your landlord has, you will not get reimbursed for your belongings. You must get a policy for yourself in case something happens, like a flood, fire or burglary.
Homeowners Insurance
Purchasing flood insurance is a good investment for your new home. Most basic policies don’t cover flooding unless you specifically request it. Consider homeowners affected by Hurricanes Katrina and Sandy — many lived in areas where flooding is never considered a threat. Flooding can happen unexpectedly and be very damaging, so make sure you get the right plan.
When shopping for homeowners insurance, saving money is key. Having devices such as smoke alarms, carbon monoxide detectors, and monitored home security alarms in place can offer great discounts. Remember to discuss these (and other) safety devices with your agent when negotiating your next homeowners insurance policy.
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.
There are many things that can unexpectedly cause damage to your home. Fire just happens to be one of them. You need a good policy that insures fire in case your home is damaged by human error, wildfire, arson, cars, storms or even earthquakes. Look over your policy and talk with your agent to be sure that damages of this type are covered.
To lower your homeowners insurance, you should have a security system installed. A security system should be linked to central station or a police station. To have your insurance priced lowered, you will, most likely, have to provide proof that your system is up and running. This could lower your annual premium by five percent.
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.
You should install extra smoke alarms in your home. Working smoke alarms are the best way to protect yourself and your belongings from injury and damage which is why they are recommended and frequently required by homeowner’s insurance companies. Increasing the number of smoke and carbon monoxide detectors is a simple way of convincing the homeowner’s insurance that your home is safe and less risky.
You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.
Consider asking your insurance agent for a home owner’s policy review once you reach the age of 55. Often, insurance companies offer discounts to senior citizens beginning at age 55. If you aren’t offered this discount, you might want to look around.
Paying your mortgage down to zero can help offset insurance costs. You will likely be viewed by the insurer as someone who will take better care of the home once it is paid off. As a result, the majority of insurance companies will provide lower premiums. Once you pay off your mortgage, call your agent and let them konw.
Always get the “guaranteed replacement value” stipulation in your policy. This gives you the cost of a full rebuild of your home, regardless of what destroyed it. One of the best benefits of this is that even if inflation occurs in the construction market, the insurance company will be the one to bear the extra costs.
Unlike auto and health insurance, homeowners’ insurance is able to cover a multitude of things. You never know exactly what you need until you sit down and really examine your personal situation. Use these tips to help you out when you go on the hunt for an affordable, quality insurance package.
Make sure you keep documentation that provides for what you own and other necessary information in a safe place that you can retrieve in the event you need to make a homeowner’s insurance claim. If you suffer a loss, this documentation will help your insurance agent quickly process your claim. Keeping this type of inventory speeds the process and helps things get resolved easier. Be sure to store your inventory in a safe location such as a fire proof box or safe deposit box.