Homes today will cost you a lot of money and leave you owing a lot on a mortgage payment. Unfortunately, that’s just how the system is set up to operate. Don’t ever be caught off guard by not having the means to protect your investment. Use these tips to get a solid insurance plan for your home.
Reducing your premiums is easy. Install a home security system. This installation may result in a 5% decrease in your annual premiums. You have to prove to the insurance company that your system is being monitored and was installed professionally, of course. Also, make sure you have smoke alarms installed in the house. Together, these two improvements will keep you safer and save you a total of 10% annually.
To save money on your homeowner’s insurance consider the costs of construction projects before you begin building. Structures with wooden frames cost more to insure because they have more risk of burning, while structures with steel frames cost less because they are sturdier and hold up under adverse weather or other conditions.
When you move homes, be sure that your belongings are insured for the move. This may mean buying insurance from the moving company. Your homeowner’s insurance policy may also cover items that are damaged, lost, or stolen in transit. Check with your insurance agent about a “special perils endorsement”, which will protect valuables during a move.
Make any insurance company aware of your home security system when contacting them for quotes. Having a central security system that reports remotely to an off-site security service in case of burglary or fire can lower your monthly premiums by as much as five percent a month.
Make sure you have enough smoke detectors installed in your home. Older homes especially may need additional ones in order to get a better homeowners insurance premium. Even some newer homes can benefit financially from adding additional detectors apart from those necessary to meet the requirements.
In order to get the best rates on homeowner’s insurance, you can save as much as 25% percent by installing smoke detectors and security systems. These are low cost improvements that quickly pay for themselves. Not only are you saving money, you are also keeping your family safe!
Always purchase flood insurance for your home. Standard homeowner’s policies do not necessarily cover flooding; floods can occur even where they are not the norm. Suffering flood damage to your home and belongings can be devastating, so comprehensive insurance coverage is key.
Talk to multiple contractors and get quotes before you file your claim. If you have to make some emergency repairs, keep all your receipts. Keep track of all monies spent on temporary lodging, as these outlays may be fully reimbursable under your policy.
Keep your homeowners insurance policy up to date. If it’s been a few years since you purchased your policy, you might be under insured. If you’ve made improvements to your home, your policy might not reflect the increased value. Building costs have gone up too, so review your policy yearly, and if needed, make changes to be adequately covered.
Even if you don’t live in a flood plain, you may need flood insurance. About one-quarter of the federal disaster claims made for flooding come from homes and residences outside of high-risk areas. You may be able to get lower rates on your flood insurance if your home is in a lower risk area.
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 policies cover everything, and some only cover your things. Knowing this information in advance can spare you a great deal of expenses and grief in the event of a disaster.
Installing a security system in your home is a great way to lower your home owners insurance premiums. A savings of 5% or more is typical with the installation of a system that includes monitoring by local law enforcement or a central security center. Make sure to submit proof of the monitoring contract to your insurance company to ensure you receive your discount.
When filing an insurance claim, get several quotes from area licensed contractors. Be sure to have all paper documents and receipts on hand. Your policy will probably even cover your lodging expenses, so track those.
Guaranteed Replacement Value
Consider a policy that offers guaranteed replacement value when shopping for home owners insurance. Guaranteed replacement value means that if your home is destroyed the insurance company will pay the cost to rebuild it, regardless of what that cost is. Considering that the cost of construction often increases over the years, this is especially important if you will be in your home long term. Having such a cushion can offer you true peace of mind.
If you are a senior you may get some discounts. Senior citizens (55 and over) are often eligible for good insurance discounts. If your insurance company does not offer a discount, it may be time to look at different insurance companies.
When remodeling, make sure that you think about the insurance that you will need to cover the changes. Extensions or extra rooms will end up costing you more money on your policy. Your choice of building materials, such as wood versus a steel structure, will impact your homeowner’s insurance rates because of likely damage that will occur during fire or bad weather.
Talk to your insurance agent or company and find out ways you can protect your home from natural disasters or preventable claims. Retrofitting a home with items like storm shutters or roof reinforcement makes your home more likely to withstand storms and also may affect your home owner insurance premium.
You need to understand what your coverage is if you have a roommate. It may only cover your belongings, or it could take care of everything. See what is covered to avoid making out a check to a roommate following a disaster.
Having solid insurance means that you’ll never be left out in the cold”‘literally”‘should anything bad ever happen to your home. When you use insurance tips like these to purchase a home policy, you can be sure that you’re going to save a lot of money without sacrificing a bit on quality coverage.