How You Can Customize Your Home Owner’s Insurance Policy

admin  —  October 28, 2013

TIP! As your needs change, reevaluate your homeowner’s insurance policy. You should always make sure that your insurance coverage doesn’t have payout limits on any valuables you own.

Everyone out there needs to purchase a homeowners’ insurance policy. Being a long-time homeowner doesn’t make you exempt. Just because disaster hasn’t struck in 20 years doesn’t mean that it won’t strike in the years to come or even tomorrow. Read and understand the tips in this article if you want to find a great policy.

Homeowners Insurance

TIP! You can reduce your homeowner’s insurance premiums by installing a home security or alarm system. These systems are often inexpensive to install, but can give you peace of mind whether you are home alone or away on vacation.

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.

TIP! If you have roommates, double check your policy to see what is exactly is covered in the event of a disaster. Your policy may only include your personal items.

Be aware of what your home insurance actually covers. A regular home insurance policy doesn’t cover things such as flood damage. This type of insurance needs to be purchased separately through the Federal Emergency Management Agency. Another thing to consider is earthquake damage. If this is something that you may experience, you will have to buy specialized coverage from a private home insurance company. Luckily, both of these types of coverage are relatively inexpensive.

TIP! Be sure to install a smoke/fire alarm in your home to lower your insurance premiums. They protect your family and provide you with additional discounts on your policy.

To protect your personal property in a rented residence, you need renter’s insurance. The landlord or property owner will have insurance to cover losses on the building, but not on the items inside your unit. This is your responsibility. Fortunately, renter’s insurance is quite affordable, and available from most insurance companies and independent agents.

TIP! Any necessary claims will be easier if you have documented your home through video, photographs or paper. All insurance companies require some form of documentation that must be provided with your claim.

To ensure the protection of major home improvement projects always report them to your homeowner’s insurance company once they are completed. While this may result in a small premium increase, it is the only way to make sure that the added value of your home is covered in case of damage.

Guaranteed Replacement Value

TIP! When it comes to homeowners insurance, make sure you have enough to cover the total costs of rebuilding your home. The construction cost of your home usually increases.

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! To get an accurate read on how much coverage you need, take yearly inventory of your house and everything inside it. There are all too many homeowners out there who spend far more than they have to on insurance because they never review their homes’ real value.

Document all of your valuables and keep the pictures or videos of the things that you want covered under your home insurance, in a fireproof lockbox. This will protect your files and make filing a claim for the missing or destroyed items with your home insurance company, easier and quicker.

TIP! Put a security system into your home. This extra layer of security is quickly paid back by a decrease in policy price.

If you have fire insurance and a fire occurs in your home, damage to your landscaping is usually covered. Many people do not know this and end up having to pay their landscape damages themselves. However, most insurance companies will not pay more than 500 dollars per tree or shrub.

TIP! Remember, home damage caused as a result of earthquakes or flooding is typically not covered by homeowner’s insurance. If your home is at high risk of suffering flood or earthquake damage, you may need to purchase special insurance coverage.

Increase the deductible on your home insurance to enjoy lower yearly premiums. While this means you are likely responsible for small claims that cover things such as a broken window or a damaged section of flooring from a broken pipe, these repairs are generally only a few hundred dollars. You will save far more than that on your yearly premiums and come out of the deal with more money in your pocket.

TIP! When shopping for homeowner’s insurance it’s best to figure out exactly what you need. There is no room for cheap, as you want to make sure your valuables will be replaced.

If you are moving, check your policy. Moving can be a stressful and busy time. Even so, make sure you take the time to stop and double check what your insurance covers. If you are moving a lot of valuable things, you might want make sure that they are covered during the moving process.

Fully Covered

TIP! Water pipes need to be insulated. Probably the most notorious cause of catastrophic water damage is burst pipes.

Expensive possessions should be your top priority when deciding on a coverage plan. Under most homeowner’s policies, the content of your home is fully covered. However, highly valuable possessions might not be covered entirely. If your policy does not cover the full value of your possessions, follow your carrier’s instructions and have items listed individually to make sure you are fully covered.

TIP! Don’t spend more than you need to on coverage you can’t utilize. You’re only able to claim the actual value of your home and its contents; buying a lot more insurance than you need is not going to give you a huge windfall, sometime.

Understand the risks you face if you live in flood- or earthquake-prone areas, including what kinds of additional insurance you will need. Home owner’s policies typically do not cover destruction caused by these two forces, and you will likely need additional coverage to fully protect your home in the event of a disaster.

TIP! Before purchasing a huge amount of homeowner’s insurance coverage, determine whether you actually need that much. If your bank account is large enough to completely cover your home, you will not necessarily need insurance.

If you have problematic trees on your property, make sure that you are covered in the event that a tree damages a neighbor’s property. Some insurance companies will help pay for tree removal if the tree poses a risk to your home or a neighbor’s. Have a professional arborist examine the trees for damage or disease.

TIP! You’ll want to make sure that any personal possessions that you think are valuable are documented. You’ll want to take photos of any items or have them appraised so that, if you have to file a claim, you’ll have documentation to prove what the items are worth.

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.

TIP! Learn about how endorsements may affect your homeowner’s insurance policy. These are simply adjustments to a basic policy.

Don’t be afraid to ask your insurer for a better deal. Before changing your home insurance provider, call up to your existing insurer and ask if they can offer you a better deal. Insurance companies do not want to lose customers to their competitors, so this technique can quite often cut your annual premiums and save you the hassle of having to change providers.

Wood Burning

TIP! Keeping the humidity in your house low will help you to avoid any mold problems. Unless the mold is the direct result of something that is covered, most insurance policies don’t cover mold remediation.

If you have a wood burning fireplace or wood-stove, consider switching to gas or alternate fuels to reduce home owner insurance premiums. Often, wood burning heat sources result in a surcharge or additional premium. Changing to a different fuel source can prevent this additional charge from being added to your policy.

TIP! You should not use the amount your home cost as the amount you insure it for. Your land shouldn’t be included in the coverage as it won’t need to be rebuilt.

Once you’ve wrapped your mind around the idea of having insurance, you can then start to take the steps necessary to craft a personal policy and get the protection you need. The article you just read can help you do this, but you must be willing to put these tips to action in order to secure a policy.

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