You never know when something bad is going to happen to your home. It could happen when you’re asleep tonight, or it could wait until you’re on vacation. Any way you slice it, you need a solid homeowners’ policy to protect your house. Please, read these insurance tips before you purchase a policy.
There are two things you can do to lower your home insurance premiums. First, install a security system. This will potentially reduce your annual premium by 5%. Bear in mind, that you must issue the insurance company with proof that you have a working security system, such as a contract or bill. Second, install smoke alarms throughout your home. This could save you as much as 10% per year.
Make sure that you have a record of everything that is covered under your home insurance. Make a detailed list, and take pictures of all valuables. It also helps to keep receipts for big ticket items. There is free software online that will enable you to create a home inventory, room by room. If you need to make a claim, having all this information on hand will help to speed up the process.
When considering insurance for your home, it may be beneficial to have an alarm system installed. Not only will this be beneficial for your own safety, but your insurance rates will reflect the added security as well. After providing proof that your system is monitored by an agency, you may qualify for up to 5% off your rates.
If you want to be sure you are paid properly for a homeowner’s insurance claim, you must report any loss to the insurance company immediately. Claims on your home are subject to certain time limitations, so waiting too long may give the insurer a reason to say that the claim is no longer valid.
When you are dealing with homeowners insurance keep in mind that some insurance companies will actually lower your premium if you get your mortgage paid off. They will think that since you own the home outright you are more likely to take better care and pride in your home.
Review your homeowner’s insurance policy every year to make sure it still accurately reflects your situation. Keep track of additions or changes to your house that might call for discounts or premium reductions. Do not neglect your neighborhood, either. The installation of new services nearby (e.g. a new fire hydrant close to your house), may also call for lower insurance payments.
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.
You can lower your annual premium by 5% or more with the simple installation of a monitored security alarm. Whether it is connected directly to your local police station or the security company, this type of alarm saves property and people and will also save you a lot of money. Look for promotions from the major alarm system companies or call them directly to possibly negotiate a good deal.
If you look only at cost when seeking homeowner’s insurance, the company you choose may well be one where you deal only with a distant call center. But if a tree falls on your home, you want someone with an office nearby, someone who will actually come out and look at the damage.
When it comes to homeowners insurance, make sure you update it if your life changes. If you go through a divorce, make sure the right people are on the policy. If you a built a playground or added something to your house, you will need to update that, too. Being current is what you need to be!
Before you buy a home you should check to see how much the insurance will cost for it. Different factors determine how much you will be paying for homeowner’s insurance such as what the home is made of, the size of it and the age of different systems within the home like the electrical system.
Before you purchase a home, it’s best to know what it is constructed from. Depending on what it is made of it can cost more to insure it. For instance, a home constructed mainly from wood is more costly and expensive to insure than a home constructed from brick or concrete.
Total Cost
Consider the total cost before submitting a claim on your home owner’s insurance policy to prevent premium increases. If the total cost for a claim is lower than your deductible amount, do not file the claim. At the same time, if the cost is not much over your deductible, you may want to reconsider filing a claim. Often, keeping a lower claim ratio on your policy, prevents rate increases over the long-term.
To avoid potential problems when filing claims, be sure that all of your high value possessions are covered. Because of policy limits, some of the more expensive items you own may not have automatic coverage. You can ensure your valuables are taken care of by adding a specific endorsement to your insurance policy.
Home owner’s insurance policies usually include a $100,000 liability coverage. Talk to your insurance representative if you feel that the coverage in your specific neighborhood is not enough. Be familiar with this provision, as the policy may pay for certain injuries suffered as a result of damage to your property.
It’s important that you read tips like these for a simple reason: You do not want to take an insurance company’s word for what you need and what you don’t. If they had their way, insurers would sell you the maximum coverage for the maximum price. Use these tips to build your own policy.
