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. If this is your first time through the ropes, however, you can definitely encounter some questions that are difficult to understand on your own. Keep the following advice in mind when you are shopping for home insurance.
Reducing your premiums is easy. The first step is to put in burglar alarms. That will cut the premium you pay by about five percent. Be sure to send a copy of your installation bill or security system contract to your insurance company. Next, get smoke alarms through your home. These are even better – they can save you up to 10% a year.
Homeowners who pay off their mortgages faster will see less costly insurance sooner. Insurance companies believe that if you own your home outright or have a greater stake in it’s equity, you will be more likely to take good care of it and keep it’s value higher. Try to increase the amount you pay each month to pay it off sooner.
When buying a home, don’t forget to purchase flood insurance. Many times traditional insurance doesn’t cover it, and current events remind us all the time that flooding may occur in locations that don’t expect it. Suffering flood damage to your home and belongings can be devastating, so comprehensive insurance coverage is key.
You will save quite a bit on your homeowners insurance when you invest in a security system. This is a way to feel more peaceful and save money at the same time. Your premiums are lower for homeowner’s insurance when you have a security system because insurance companies prefer that your home has features that protect it from loss. You will eventually save enough on premiums to pay for much, or even or all, of the security system.
When you are dealing with homeowners insurance keep in mind that some insurance companies will actually lower your premium if you get your mortgage paid off. They will think that since you own the home outright you are more likely to take better care and pride in your home.
Find out about a company’s financial stability prior to getting a policy through them. Look to see if they have been in business a while and if they pay out their claims quickly. This must be done quarterly after opening a policy.
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.
Insuring a vacant house is very expensive, as a vacant property is a magnet for vandals. Vacant house insurance can cost more in a month than regular homeowners insurance costs for a year. If a family member can’t stay at the house, consider renting the property out, or exchange free rent for house sitting services to avoid having a property sit idle.
If you want to reduce your homeowner’s insurance cost, consider switching to a higher deductible. Research before acting, as small claims can cost you more money and you’ll have to fix them and pay for the damage.
Install and thoroughly maintain a security system in your home to get a discount on your homeowner’s insurance. Not only do the insurance companies see you as less risk and drop your premiums, but would-be crooks will see your system as a deterrent and choose to find someone else to rob.
When you reach the happy day on which your mortgage is finally paid off, be sure to take advantage of the insurance benefits. The premiums for homeowner’s insurance are significantly lower for a house you own outright than for one you are still paying off. Insurance companies are betting,with good justification, that you will take better care of a home that is all yours.
Look around for companies that offer health insurance, life insurance, and car insurance as well as homeowner’s insurance. You will save a lot if you purchase your policies in bundles. It is also easier to keep track of your policies if you have one company and one agent.
It is cheaper to get and keep homeowner’s insurance if you do not have injury prone devices. Insurance companies see pools, trampolines, and other similar objects to be a higher risk for injury and will therefore raise the amount of your premium. Although having a pool may be fun, removing it will save you money!
Homeowner’s insurance doesn’t usually cover destruction by earthquake or flood. You need to evaluate the chances of either a flood or an earthquake occurring in your area, and then add it on as special coverage to your policy if necessary.
Keep one or two fire extinguishers in the kitchen and around the house. Depending on your home owner’s insurance provider, having functioning fire extinguishers handy might lower your rates. It is also great to have one handy in the event of a fire. They could end up saving your life.
A home is a significant investment that you need to protect. Home insurance is the smartest protection you can have, but there are also some things to make sure the policy includes. Use these tips as you search for the best policy for your home.
Look for insurance companies with excellent customer service. Try to find a company that will process your claims without a hassle. Look online and you can find feedback on how customers liked or did not like a certain insurance provider.