If you’ve managed to turn on the TV recently, you’ve probably seen at least a dozen different insurance commercials all competing for your business. Knowing which one to choose through all the flash and pizzazz can be a bit difficult. Check out these homeowners’ insurance tips for some great advice.
Paying your mortgage off is the best way to reduce your homeowners insurance costs. Insurance agencies make the assumption that people with high equity in their home will work to preserve that value. Therefore, by paying down your mortgage, you might be able to save on annual premiums.
Insurance Rates
If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.
Your premiums will be reduced once you have paid off your mortgage. Obviously this is not easy to do, but many insurance companies can reduce their rates if your house is paid off. They expect that you’ll be more motivated to take good care of your house if it’s all yours.
To keep your coverage up to date, be sure to review your homeowner’s policy every year. Let your insurer know of changes in your home and property that may help keep your premiums down. For instance, if you have replaced a shake roof with something more fireproof, like composite shingles, you may get a premium reduction.
The home you have just bought is probably the largest investment in your life. It is a natural instinct to protect the value of your property. The way to do that is to purchase a home owner insurance policy, which is basically a contract between an insurance company and the home owner. As long as the home owner keeps paying the monthly premiums, the insurance company pays for certain losses such as damage caused by human actions or natural disasters.
Always have an inventory of valuable contents in case you need to make a claim. Losing everything will cause your memory to be questionable. Take pictures of everything, especially open closets and everything that’s in there.
Don not, under any circumstances, allow your hazard insurance on your home to lapse. Most mortgage companies have a clause in the agreement you signed that in the event you don’t pay it, they will find a new policy for it, sparing no expense, and charge you for the premium. It will usually be at least double what you were paying before. You are better off doing whatever you need to in order to keep your policy current.
If roommates share your space, review your coverage to determine what would be covered should a disaster occur. While some insurance policies will cover anything and everything under the roof, yours might limit coverage solely to your belongings. Sometimes, you will have to pay for it yourself if you are not covered.
Many homeowners want to decrease their annual premiums. A good way to do that is to select a higher deductible. Your premiums will be smaller if your deductible is higher. Putting a little money aside each month for unexpected repairs can save you from having to file a claim.
Guaranteed Replacement Value
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.
Certain elements of your house can affect the cost of your homeowner’s insurance, no matter what you do. For example, a swimming pool will raise your insurance premiums, due to the increase in liability. Your premiums will also depend on the distance between your home and emergency services. This merely suggests that you should consider this when choosing your home.
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!
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.
Install a reliable alarm system if you want to lower your homeowner’s insurance. Many times this will lower your likelihood of getting broken into. Your insurance provider will recognize this and reduce your premiums. Be sure that you send your insurance company written documentation proving that your home is being protected by a security system.
Check the insurance cost for the area you plan on buying a home. Some places that are more prone to natural disasters have higher home insurance rates. Also the neighborhood you plan on buying a home in may affect the cost, as well as how far away the local fire department is.
Information is most definitely power and any info that helps you save money on quality insurance is priceless. Use these insurance tips when you need to cut through the highfalutin advertising and pick an insurance policy that will work out well for you and your family in terms of price and quality.
While you may live in an area not frequently flooded, weigh the cost of flood insurance against the possibility of flooding. Many flood claims come from outside of flood zones. You might also get a big discount on insurance should you reside in a low-to-medium risk neighborhood.