For Beginners And Veterans, A General Guide To Home Owner’s Insurance

admin  —  August 11, 2013

TIP! Reducing your premiums is easy. The first thing to do is have a security system installed.

It seems like there’s a new insurance company going into business every single day. Their competitive prices might lure you in instantly, but you need to be fully aware of how the home insurance business works before you leap. Read the tips provided here to help you make a good decision.

Insurance Company

TIP! Flood insurance may be a smart investment, even if you don’t live in a high-risk area. About one-quarter of the federal disaster claims made for flooding come from homes and residences outside of high-risk areas.

As soon as you pay off your mortgage, contact your home insurance company. There is a good chance that you will get your premium reduced. An insurance company views someone without a mortgage in a positive light, thinking that they are more likely to take good care of their house if they own it outright.

TIP! Talk to multiple contractors and get quotes before you file your claim. Be sure you keep all documentation and receipts for work you did in an emergency so you don’t incur more loss.

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.

TIP! You will save quite a bit on your homeowners insurance when you invest in a security system. This will not only give you peace of mind, it will also save you money on your insurance premiums.

If you want to insure your home against flooding, you’ll need a flood insurance policy. Flooding is not covered by most regular homeowner’s insurance policies. Protection against flooding covers damage from things like too much rain, creeks rising, landslides and more. If you think you need this additional coverage, speak to your agent, who will explain options and costs for your area.

Security System

TIP! Keep as many policies with the same company as possible to reduce your total premium. Many insurance companies offer a discount if you have 2 or more policies with their company.

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.

TIP! If you want to reduce your homeowner’s insurance cost, consider switching to a higher deductible. You might want to research this, however, since smaller claims like water damage or broken windows may cost you since you will have to pay for them.

Pay off a mortgage before changing insurance policies. This will help you save a bundle on your insurance premiums. Insurance companies assume that people who outright own their homes will take superior care of their homes than those who don’t.

TIP! If the area in which you live is susceptible to floods or mudslides, then you need to look into supplemental coverage specifically for these instances. A lot of home insurance policies do not include flood coverage, but you can buy it with the federal government.

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.

TIP! Communicate with your insurance company if you do not smoke cigarettes to see if you get a discount. Do not let anyone smoke inside your home.

Pay your home insurance yearly instead of monthly. Breaking it in to monthly payments may make it seem to be cheaper but if you save the money to pay it in full for the year, you will get a discount for making that payment. This can save you a good bit of money over the years.

TIP! Inquire about the coverage that you have on your valuables through your home owner’s insurance. Most homeowners insurance policies do not cover possessions that are valuable, such as coin collections, gun collections, jewelry, or fine art.

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.

Safety Features

TIP! When you are going to take pictures of your house for inventory purposes, be sure your camera has flash if it’s digital. A video camera can also come in handy when doing this.

To lower your home insurance rates, add new safety features to your home. Home insurance companies often have discounts available based off of safety features like door and fire alarm systems. If you have recently upgraded your home with these features, be sure to call your insurance company to alert them and check on potential discounts.

TIP! If you really don’t need a home insurance policy, avoid the extra expense. If you owe no money on your house and you have adequate funds to repair or replace your home in case of damage, then you may not need to purchase homeowner’s insurance.

While your homeowners policy may protect you in the event of a fire, burglary, or natural disaster, such as an earthquake, it may not cover you for flooding, mold or other common disasters. Make sure you know what you are getting and what additional coverage you may need to purchase separately.

TIP! Make sure you understand the effects of endorsements. These are amendments to your basic home owner’s policy.

When considering home owner’s insurance, staying with the same company for a long period of time can affect premium rates. Many insurance carriers offer discounts or reduced rates for long-term customers, so staying with a company often makes financial sense. If you are pleased with your current carrier’s service and feel the premiums are reasonable, keep your policy with that company.

Bad Credit

TIP! Keep your important papers about insurance in a different location than your home. Store all important policy information in a safe place and leave a copy with another person.

In order to get the best rates on home owner’s insurance, it is essential to maintain good credit or repair bad credit. Insurance companies look upon bad credit as an indication of how likely they are to lose money while insuring you, and you will pay more for a policy.

TIP! You should not guess as to the amount of homeowner’s insurance you need without performing some due diligence. This may place you in a bad spot if the rebuilding costs are more than you estimated.

Before seeking out homeowner’s insurance, create a list of criteria you are interested in. You should get a lot of theft coverage if you reside in a high-crime area. If you live on a flood plain, you would want coverage for flooding and water damage.

TIP! Save on other insurance policies using your homeowner’s insurance. A lot of insurance companies will group together different types of insurance in combination with your homeowner’s insurance in order to give you a steep discount on all the products.

Place a card with the price of the item and date that you purchased it next to the item you’re photographing or videotaping for your homeowner’s insurance. If you have a copy of the receipt, that is an excellent help to a claim. So keep those receipts with the video for safe keeping.

TIP! If your house is harmed and you can’t live in it during repair, your insurance policy should cover the living expenses if you’re staying in a hotel. You should be entitled to approximately 20 percent of the coverage on your home.

Buy all your insurance policies from the same insurance company. By purchasing your home insurance, contents insurance, health insurance, life insurance, dental insurance, travel insurance, flood insurance, pet insurance, mortgage insurance, credit insurance and auto insurance from the same insurance provider, you could be eligible for a large multi-policy discount.

TIP! Inventory your home every year to ensure up-to-date records and make sure your policy is enough to cover them. This will help you make allowances for the things you acquired or sold over the course of the year.

A lot should go in to your final decision. You should never decide to purchase insurance on a whim or simply for the savings. Doing so will result in shoddy coverage. If you use these tips to find the right coverage, you will be able to save money, while still receiving the quality coverage your home needs.

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