Not All Home Owner’s Insurance Policies Are Created Equal

admin  —  August 10, 2013

TIP! When getting quotes for insurance, it’s important to let them know you have a security system. A security service and system for your home that is monitored remotely can effectively reduce your insurance premiums by 5% or more monthly.

There are many, many reasons that you need to be protected by insurance as a homeowner. Even if someone is trespassing on your property and gets attacked by your dog, you could be on the hook for the hospital bills. It’s crazy, yes, but that’s how the system works. Use these insurance tips to make sure you’re always protected.

TIP! Certain things in your home will affect the cost of your insurance policy. For example, if you’ve got a swimming pool, your insurance may be higher due to higher liability.

When considering insurance for your home, keep in mind that having your mortgage paid off can actually effect your premium amount. Insurance companies will commonly reward you with a lower premium if your mortgage is paid off, because it is generally thought that a home will be better taken care of if it is fully owned.

TIP! Home security can lower your premium. Systems such as these are inexpensive, protect your home, and save you money on premiums.

You should always review your homeowner’s insurance policy annually to make sure that you still have the right policy for your home. Compare your premiums with quotes from other insurance policies. Be sure to take note of any changes that could affect your premiums, both on your property and in the neighborhood.

TIP! Pay your mortgage in full before getting an insurance policy. Doing this can decrease your annual premiums substantially.

Before a flood strikes, you need to know what to do to be sure that your home is insured against floods. The only way to insure against the risk of floods in the US is via the National Flood Insurance Program (NFID), administered by FEMA. Insurance companies work with FEMA to sell coverage to homeowners. Therefore, always have a plan in place to cover flood protection, and know whom to contact at your insurance company in order to arrange for it.

Insurance Company

TIP! If your neighborhood has gone through any changes, you might have lower home insurance premium prices. A close-by fire station and new fire hydrants within 100 feet are things that will cut your rates.

Lower homeowner insurance premiums with a security system. Be sure to choose a system that is monitored from a central location. This gives proof that your home carries a lower risk and allows the insurance company to give you a discount, sometimes of 5 percent or more. Be sure to keep all security system paperwork, as you may be required to provide copies to your insurance company.

TIP! Add a high-tech security system in your house with a direct link to the alarm company. Savings from this new installation reach above 5% while providing the family with needed security measures.

Consider installing an alarm or security system to lower your homeowner’s insurance. Not only will you be protected from burglary or fire, but you will also lower your premium amount by installing features like this. You may also want to install deadbolt locks, which will lower your insurance cost too.

TIP! Consider raising the coverage of your liability on your homeowner’s insurance to protect from claims on property damage or bodily injury. It protects you when someone else is hurt in your residence or by someone who lives there.

One incentive to pay off your mortgage as quickly as possible is that your home owner’s insurance premiums may drop. Insurance companies assume that you will take better care of your dwelling if you own it outright than you do if you are still paying on your home loan.

TIP! Your home must be equipped with smoke alarms. Many newer homes have smoke detectors already installed.

Lower home insurance costs by raising your deductible. The reason larger deductibles will decrease your total premium costs is because the insurance company will not have to pay as much in claims. A higher deductible will result in more money spent out-of-pocket in the event you suffer a loss, but depending on your situation, the lower premium expense may justify that risk.

Approved Burglar Alarm

TIP! You need to figure out how much it would cost to actually replace your home, and then buy enough insurance to cover that expense. Contractor costs increase over time, so be sure that your policy accounts for this.

Secure your property by installing an approved burglar alarm and replacing broken locks on doors and windows. Home insurance providers look favorably on customers who secure their homes, as it decreases the chances of theft or arson. An approved burglar alarm system can reduce insurance premiums by up to 8%.

TIP! You can lower your premium costs by increasing your deductible. These higher deductibles cut the premium costs because they raise the claim threshold where the insurance provider will pay.

Take out your buildings insurance and contents insurance with the same home insurance provider. Insurance companies want as much business from you as possible, so if you take out buildings cover and contents cover with the same firm, you can usually negotiate a substantial discount off your annual insurance premiums.

TIP! Insulate the water pipes in your home. A common claim against homeowner’s policies involves pipes that have burst.

Do everything possible to prevent yourself having to make a claim on your home insurance. If you don’t make any claims with your home insurance provider, you can build up a no-claims discount. After five years of no claims, many insurance companies offer discounts of 50% or more on your annual premiums.

TIP! Work with one insurance company to build a bundle of insurance policies for you so that you spend less money on all policies. Insurance companies cut multiple policy premiums to add an incentive to purchase more products from them.

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! If you need to photograph items in your home to submit to your insurer, it is best to take pictures with a digital camera and flash. You can also use a video camera to record the entire room.

There are several types of home owners’ insurance policies available on the market. Make a list of the most important items you want to insure and another list, with the most likely natural events that may occur at your location. Arm yourself with these lists before you visit your insurance representative and don’t be afraid to ask for coverage for each item.

TIP! When repairing your home, use a contractor that is licensed. By hiring a licensed, insured and reputable contractor, you are making a favorable impact on the way that your insurer values your home.

When purchasing home owner’s insurance, don’t overbuy. You are only able to claim the actual value of your home and the contents in it, so do not buy too much insurance. Complete an analysis of the items within your house you could claim if they were damaged, as well as the value of your house and any other structures on your land. Use that to figure out how much coverage you need.

TIP! Homeowner’s insurance policies do not generally cover earthquake related damages. Standard insurance policies will typically cover exterior and interior damages caused by hurricanes, lightening, and fire.

Never over-claim on your home owner’s insurance! Pretending you owned a 150 inch television just to get more money will bite you in the end. The more you claim, the higher your insurance premiums will end up being after your claim, and that raise in premium will last for years!

TIP! If damages to your home are so severe that you cannot live there, you must be able to offer your insurer some means of contacting you. For instance, if you have suffered a natural disaster or a fire that makes it impossible for you to remain at home, give the insurer valid contact information.

Don’t forget your drawers when completing your photo or video inventory for your home insurance. Also, make sure you include anything you might be hiding away in a secret spot like expensive jewelry. Open up that jewelry box and take photos of each item separately with the purchase price and date of purchase, if known.

TIP! You should never just blindly guess how much homeowner’s insurance you need. This could hinder your ability to rebuild your home in case of a disaster if your estimation was off.

Just about anything can happen and leave you on the hook for some big bucks. Unless you’re protected, you could end up losing your house for multiple reasons. Follow these tips and use them to work up a solid insurance policy that’s affordable and that provides ample protection for your home.

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