The Common Pitfalls Regarding Home Owner’s Insurance

admin  —  October 21, 2013

TIP! Buying insurance for your home shouldn’t be an “if”, it should be a “when”. If you don’t have it in place, you’re not covered for damage.

Imagine the following scenario. It is a stormy night outside, and you decide to stay in with your children. The wind howls outside. All of the sudden, you hear a loud CRASH. A tree from your backyard has fallen through your kitchen and office. A large portion of your house is destroyed. Would you be protected with insurance? Use the tips in this article to learn more about home owner’s insurance.

TIP! As you compare rates and request quotes for homeowner’s insurance, don’t forget to include any information about security features in your home. You can reduce your premium each month by up to five percent if your security system is connected to a security service should you be burglarized or have fire.

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! Low premiums are something we all desire. Select one with higher deductibles if you want to maximize your policy.

Having a home security system installed, especially one that has a monthly monitoring system against burglary, can seriously reduce a homeowners insurance premiums. The cost of your system can be partially recouped in the monthly or yearly savings you will make, and of course, you will have peace of mind. It can also mean that you will feel safer when you are at home.

TIP! It can be extremely difficult to replace your valuable items in a claim if you aren’t documenting all of them with pictures. That might seem like work, but your insurance company can only reimburse you for things that it knows exists and have proof of value.

Before you buy a home, find out how much insurance runs in the area you are considering. In some locations, homeowners insurance is very high due to a number of factors. For example, if the home is located in a flood zone or an area where hurricanes are to be expected, high insurance rates are also to be expected.

TIP! Some features of your dwelling will cause your insurance to increase. For instance, if you own a swimming pool, your insurance cost will automatically be higher because of the increased liability.

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.

TIP! Installing a security system can save you money on homeowner’s insurance. Doing so makes your home less vulnerable to burglary or other assault.

Buying an excellent alarm system is a great way to decrease your homeowner’s insurance premiums. This lowers the chances of a break in. Your house will be less risky to insure and your premium will decrease. Be sure that you send your insurance company written documentation proving that your home is being protected by a security system.

Federal Disaster

TIP! Invest in a home insurance policy that has “guaranteed replacement value,” so you are not left living in a mobile home instead of the home that you have spent years paying for. Such insurance covers the full cost of a rebuild on par with what was lost.

If you live in a flood-prone area, never assume that you can rely solely on federal disaster assistance rather than purchasing flood insurance coverage. In the first place, a large percentage of all flooding incidents never qualify for federal disaster relief. Secondly, you may pay more in interest for a federal disaster loan than you would pay for flood insurance.

TIP! Keep insurance costs in mind when considering remodeling of your home to save you money. If you are adding space to your home, you want to call your insurance company and let them know the details.

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 all possessions in the home, and others just cover yours. Make sure you know exactly what is covered to avoid roommate problems later on.

TIP! Your premiums will be lower if you have multiple policies with one company. Insurance companies often reduce premiums for customers who have more than one policy with them.

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! In order to receive protection from property damage claims, increase your liability coverage. You will be covered in case you get injured or someone gets injured in your home or if something gets damaged.

You should consider the increase in home insurance that you will face if you invest in a swimming pool or trampoline for your property. These items are deemed risky and will likely raise the cost of your premiums by roughly ten percent or even more for the year.

TIP! Your homeowner’s policy should be of a high enough amount that you could rebuild your house if necessary. Contracting costs and labor costs typically increase.

Stay vigilant over the cost of your home insurance premiums by doing an annual check of your policy statements, and seek quotes from other companies to ensure you are paying the lowest rates. Your insurance doesn’t always automatically reflect changes that can lower your rates, so you want to make sure any discounts for adding alarms, sprinkler systems or removing a swimming pool are applied. Staying vigilant is the best way to save money!

TIP! Make sure to have a good idea of what kind of insurance you want going in. Do not purchase cheap insurance because you will not have the coverage you need if tragedy should strike.

Before you even purchase a home, make sure to ask your real estate agent questions about homeowner’s insurance cost. The price of homeowner’s insurance varies, usually depending on location. You do not want to live in an area that is going to leave you broke paying for homeowner’s insurance.

TIP! Sometimes you are entitled to a discount for being a nonsmoker. Don’t let anyone smoke in your house.

List expensive possessions separately on the policy or as an added endorsement, in order to protect them. Anything of true expense, like jewelry, generally won’t have its full value covered under the policy. If the policy doesn’t cover all of your possessions, listen to your provider and get them listed individually to be sure they’re totally covered.

TIP! If you want to save a bundle on your homeowners insurance monthly payments, try raising your deductible. However, then you have to pay for more of the repairs if there is a problem.

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.

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.

Consider buying car insurance through the same company your homeowner’s insurance is through. Most of the time insurance companies, will give you a discount for having more than one policy through them. This can save you 20% or more on both insurance policies and make it easier to make one payment instead of two.

TIP! Pay your homeowner’s premium annually. This helps you avoid administration fees and interest generally associated with monthly payments.

The scene depicted in the beginning of the article is just one example of how unexpected life can be. Now that you know how important home owner’s insurance is, apply the tips in this article to stay informed about this kind of insurance. The more knowledge you have, the more protected you will be.

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