There are some simple tips that one should follow when looking for a new home owner’s insurance policy. Once you are a bit more educated on the lingo that home insurance agents use, you will be in a better position to purchase the type of policy options that you need.
When you are shopping for insurance rates, mention any safety features your home has, such as a security system and smoke alarms. You’ll find that your premiums are reduced according to how good your system is.
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.
Your home may incur damage from a number of factors. One of these is fire. You need a good policy that insures fire in case your home is damaged by human error, wildfire, arson, cars, storms or even earthquakes. While homeowner’s insurance policies usually have fire insurance, you should verify the amounts and types of fire insurance coverage you have in your homeowner’s policy.
Be sure to review your policy yearly to check and see if there are any discounts available to you. This may result from additions such as a security alarm tied to a monitoring agency, a fire suppression system, and installation of additional fire alarms. There also may be items in your neighborhood that can effect it such as removal of trees or additional fire suppression outlets.
To save money on your homeowners insurance talk to your agent and see if the company provides discounts for installing additional smoke detectors. Many older homes lack them in areas that are considered standard places to install today and many insurance companies will provide a discount as an incentive for you to add more.
Check your policy if you have others that live with you to see if they are covered as well. While some insurance policies will cover anything and everything under the roof, yours might limit coverage solely to your belongings. Make sure you know exactly what is covered to avoid roommate problems later on.
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are subject to certain time limitations, so waiting too long may give the insurer a reason to say that the claim is no longer valid.
Certain things in your home will affect the cost of your insurance policy. For example, a swimming pool in your property is considered higher risk, and therefore, will raise your insurance premiums. The distance between your house and emergency services will also impact policy pricing. It is important to look into all of these things before choosing a policy.
You can reduce the amount you pay for homeowner’s insurance each year by as much as 10% if you have fire alarms installed. The reduction is due to the added security against fire. Plus, some companies will even offer a steeper discount if you’ve got multiple alarms set up.
It is common for home insurance agents to try and sell you more insurance coverage than is necessary. Many of them work on commission, and will directly benefit from the extras that they sell to you. It’s smart to be prepared with knowledge before beginning the conversation with an agent.