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.
Check with your homeowner’s insurance before adding any major recreational structures to your property. Adding on a swimming pool, above ground or in ground or even children’s toys, like swingsets and trampolines, can significantly raise your homeowner’s insurance rates. The increased cost of these items should be considered before any major renovation.
Having a home security system installed, especially one that has a monthly monitoring system against burglary, can seriously reduce a homeowners insurance premiums. The cost of your system can be partially recouped in the monthly or yearly savings you will make, and of course, you will have peace of mind. It can also mean that you will feel safer when you are at home.
To save money when buying homeowners insurance, consider putting an alarm system in. Most major underwriters will give a discount for a home that has a monitored alarm installed. Many times the discount you get will add up to more than what you pay for the monthly monitoring cost.
Make sure you have homeowner’s insurance that includes a guaranteed replacement value policy. Doing so means that the insurance company will have to cover the whole cost of rebuilding your home in case of disaster. Since these costs tend to rise as time goes by, this policy will guarantee that you can afford to replace your home.
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.
When getting homeowners or renters insurance make sure you tell your insurance agent to add an addendum for flood and water damage. Most policies do not cover water damage unless it is added to the policy. Even if you don’t live in a flood zone, your home can suffer water damage from extreme weather and after a fire.
Get an estimate of damages to your home prior to filing a claim on your home owners insurance. If it is not going to cost you much more than the deductible to repair, do not file the claim. Each claim that you file will cause your premium to increase for the year.
Insuring a valuable item can help one get it replaced or even repaired should something unexpected ever happen too it. It will also help if the item gets stolen from an individuals home. The right insurance coverage for something could make all the difference if something ever happened to it.
You can lower your annual premium by 5% or more with the simple installation of a monitored security alarm. Whether it is connected directly to your local police station or the security company, this type of alarm saves property and people and will also save you a lot of money. Look for promotions from the major alarm system companies or call them directly to possibly negotiate a good deal.
Your overall premium can be held at a lower number by keeping various policies under the same company. Most insurance providers offer discounts if you purchase your policies in bundles. Having all insurance with one company makes financial sense.
When adding a feature such as a swimming pool or trampoline to your home, factor in insurance costs and recommendations in the project. Defined as attractive nuisances, these features have increased risks associated with them can increase premium, but following recommendations like adding a secure fence and gate can offset the expense somewhat.
Make potential claims easier by documenting everything inside of your home using photographs, video as well as a list of inventory. When you have to make a claim, you’ll have to supply this to your insurer. Knowing exactly what was in the home makes things go more smoothly for yourself and the company you get your insurance from. Make sure this inventory is kept somewhere safe like a deposit box or some kind of fireproof container.
If your dog is a pit bull, Doberman, German Shepherd, Akita or another breed with a reputation for aggression, make sure that you ask how your pet will affect your home owner’s insurance premiums. Some companies will charge you more for insurance if you have breeds that are considered to be a higher risk for liabilities.
Choose a higher deductible rather than a lower one. Claims shouldn’t be filed on small problems, so this is a great way to save you money on your insurance premiums. They can be reduced by up to 25% just by making a small change such as choosing a higher deductible.
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.