If you are buying a brand new home, you must do everything in your power to protect and maintain its value. This is where homeowner’s insurance comes into play. Do you have many questions about insurance? Keep the following advice in mind when you are shopping for home insurance.
To make sure that you are paying the lowest amount on your homeowner’s insurance, compare the cost of your insurance policy to another company’s policies at least once a year. You should also review your existing policy and mark any changes that may have occurred which could lower your premium.
Make sure you notify the company about fire or security alarms you have installed. A security system that is linked to a reporting agency can cut your monthly premiums down at least five percent.
Many homeowners are concerned with maintaining low annual insurance premiums. Select one with higher deductibles if you want to maximize your policy. If you have a higher deductible, the premium will be smaller. Keep a slush fund so you can pay for small fixes.
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.
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. The more you are doing to protect your home, you become less risky to the insurance company, and that cuts your premium. You will eventually save enough on premiums to pay for much, or even or all, of the security system.
Be sure to update your policy if you make changes to your property. If you do things such as remove a trampoline or a swimming pool or pay off your mortgage, you will see a decrease in your premium. If you add a security system it will reduce your rates as well.
Take the time once a year to review your policy and make comparisons with other home insurance companies. You may find that the company that gave you the best premium rate last year is going to cost you more for the following year. Do not hesitate to change to another reputable company if the price and coverage is right.
To pay lower home insurance premiums, install a home security system. Insurance companies typically give a discount of 5% or more, to homes that have a maintained security system. You may have to pay more for your security system up front, but the purchase will save you money in the long run.
Be sure to install locks on all of your windows. If you do not have locks on all of your windows, you are already paying more for your home owner’s insurance. Go ahead and install locks on your windows. They are not expensive and it will, ultimately, lower what you are already paying.
Documenting and photographing your home and its contents will expedite any future claims. Make a list of all valuables in your home and take extensive pictures of the home itself, then store this evidence in a safe place such as a safe deposit box. If something ever does happen to your home you have all the data you need to back-up any claims and get them processed faster with less scrutiny from the insurance company.
Your overall premium can be held at a lower number by keeping various policies under the same company. Many companies will allow you to bundle your polices for a reduced premium. For example, keeping your homeowner’s insurance and car insurance with one company may give you a good discount on both policies.
Install a sophisticated alarm system in your home, preferably one that is monitored by a reputable security company, or is linked directly to the local police station. Insurance companies reduce your yearly premium by up to 5% if you can prove by an invoice or contract that you have a centrally monitored security system installed.
Be aware that filing numerous homeowners insurance claims can raise your rates or cause non-renewal. If the amount of damage to your home exceeds your deductible by less than a couple hundred dollars, it is better to pay the expense out of pocket than take the hit on your premium or lose your coverage for filing too many frivolous claims.
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.
Another way to get a discount on your home insurance is by having some form of fire safety in place. Smoke alarms are a good choice. While these are generally common in most current buildings, installing them in aging homes can save you about 10% or more in annual premiums. The other plus is that they can possibly save you if there’s a fire.
Don’t buy too much coverage. You can only claim what’s actually the value of your house or it’s contents, so buying more insurance will not end up giving you a windfall some day. Review values on your personal belongings and of the home itself in order to determine an appropriate coverage amount.
Buying a home is a huge investment; therefore, it’s important that you properly protect it. Homeowner’s insurance is the ideal way to protect your home. However, you need to look for certain things. Use these tips as you search for the best policy for your home.