December 02, 2018

Things to Consider When Purchasing Home Owner’s Insurance

Carol Ringwald

Carol Ringwald
Owner/Credit Medic Group

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Almost every single day there are people visiting insurance sites and paying far too much money for their homeowners’ insurance. You can set your clock by it. Do not expect the insurance companies to protect you on this one, though. This is all down to you?—?and that’s exactly why you need to read these tips.

To lower the annual insurance premiums on your home, increase your deductible amount. Although this means that minor claims such as leaky pipes, broken windows or the like will not be covered, these types of damage typically only cost a couple hundred dollars to repair, which will be less than you save.

When your children leave home or you acquire new possessions, your coverage should be decreased or increased accordingly. Look over your policy again to check on coverage for different valuables. If you have certain things that require extra coverage, specific riders can be obtained that guard against theft and damage.

You can save money on your homeowners insurance by providing proof that you have made your home a safer place through the installation of a number of safety-related features. Install smoke detectors, fire extinguishers, deadbolt locks, burglar alarms, and/or fire alarms, and your insurer will likely offer you a preferred rate.

It may be smart to have flood insurance even when living away from bodies of water. About a quarter of all disaster flood claims are from places that are not in traditional high-risk areas. You might also get a big discount on insurance should you reside in a low-to-medium risk neighborhood.

Keep your homeowners' insurance policy up to date. If it’s been a few years since you purchased your policy, you might be underinsured. If you’ve made improvements to your home, your policy might not reflect the increased value. Building costs have gone up too, so review your policy yearly, and if needed, make changes to be adequately covered.

What is your age? You may be eligible for further discounts over the age of 55. Home owner’s insurance often offers senior citizen discounts. You should shop around if your insurer doesn’t offer this type of discount.

Always get the “guaranteed replacement value” stipulation in your policy. This gives you the cost of a full rebuild of your home, regardless of what destroyed it. One of the best benefits of this is that even if inflation occurs in the construction market, the insurance company will be the one to bear the extra costs.

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.

Monitor your credit score and history to keep your home owner’s insurance premiums as low as possible. Many carriers now consider credit history as a factor in determining rates, so even if you have been with a company for some time, changes in your credit report can affect the amount of premium charged.

One way to save on your home owner’s insurance is to increase the amount of the deductible on your policy. Increasing your deductible can usually help bring your premiums down. Make sure, though, that in the case of a claim you are financially comfortable with paying the deductible amount you are choosing.

Have a security system installed in your home. When you have that extra security, the cost is absorbed by how much you save on home insurance. Furthermore, this increases your property value, keeps your family safe and sound and puts extra money in your pocket.

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.

By using tips like these focused on homeowners’ insurance, you will begin to understand how this type of insurance works and how you can save a lot of money without having to give up on the coverage features you need. Always make sure that you’ve learned about insurance before you sign on.

Comments? You can contact me directly via my ExecRanks profile.

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