Homeowner’s Insurance: Things You Should Know

A lot of people say that the lingo on Wall Street is too confusing for people to understand and that’s why the companies are always able to get away with hurting the average person. Well, the same holds true for insurance companies. Don’t fall victim to the confusing lingo and use these tips to help you purchase the right home insurance plan.

Save money on your homeowner’s insurance by not purchasing items that are potentially injurious. Building a swimming pool or buying a trampoline can raise your annual premium by as much as ten percent or even more. Instead, visit the neighborhood pool or playground and get the same enjoyment for a lower price.

Flood Insurance

You may think you don’t live close enough to a body of water to have to worry about flood insurance…but think again. Before you decide you don’t need it, assess the flood risk for your geographical area. You will be surprised at the unexpected parts of the country which have experienced floods in the past year or two, and if you live in or near on of these areas, flood insurance may be right for you. FEMA.gov is one site that provides information on flood risks for all parts of the U.S.

If you have any spare money in a savings account, use it to pay off your mortgage. When you own your home outright your annual home insurance premiums can drop dramatically as insurance companies tend to assume that home-owner’s are more likely to take care of and secure their property.

TIP! A recent inventory of your home will help your claim be processed much faster. It will be difficult to recall your home’s contents after a disaster has occurred.

Purchase a burglar alarm with central monitoring to save money on your home owner’s insurance. Most insurance companies will discount your policy price by up to five percent if you can show proof of a centrally monitored alarm system. The price you pay for the insurance may very well be offset by the discount on your insurance premiums.

The internet becomes a valuable tool when shopping for the best home insurance policy at the best possible rate. You will be able to compare different coverage with different companies to find the one that will fit your needs the best. Be sure to check out the company before signing on with them though. The best rate does not always mean the best policy.

Fire Extinguishers

TIP! Many homeowners want to decrease their annual premiums. A good way to accomplish that is to raise the deductible.

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.

List expensive items separately on your insurance policy or add them as an endorsement in order to completely protect them. Art, jewelry and coin collections won’t be covered if something happens, otherwise. Get advice from your insurance agent about which items you need to list and insure separately.

If you are able to choose a higher deductible, your premiums will decrease. This is great for someone that can pay for small damages without having to use insurance.

TIP! When your children leave home or you acquire new possessions, your coverage should be decreased or increased accordingly. You should see if coverage on your high-value items have a coverage limit.

When you are shopping for homeowner’s insurance you can save a lot of money by choosing a higher deductible amount. This means you will pay more up front for each claim that is filed. However, it is important to check with your mortgage company before choosing your insurance to be certain how much of a deductible they will allow you to have.

When you are ready to purchase your homeowner’s insurance plan you will need to verify that you have received credit for all available discounts. For example, if you have multiple policies with the company you should get a discount, if you are over fifty there is generally a discount, there is also credit offered for an alarm system.

You should consider how far your home is from a fire department before buying it. The closer it is, the lower your homeowner’s insurance will cost. Also consider factors like how close it is to the nearest fire hydrant. The further away it is, the more it will cost to insure.

TIP! Getting an alarm system that works well can save you a lot in insurance premiums. Your home will be less likely to be robbed.

Contact your insurance company to see if there are any discounts if you don’t smoke. Don’t allow smokers in your house. A lot of insurance carriers offer a discount for that, but you might need to ask. You’re looking at a savings of between 5 and 15% on the policy.

If you don’t have one already, install a home security system and let your insurer know. Use a reputable company so that your insurer will give you the maximum discount you are entitled to. A safe house will not only give you peace of mind, but will lower your premiums.

If you install a structure on your property, it will typically be covered for 10% of your home’s insurance coverage. If you put in a structure that is worth more than that, like a guest house, then you should seek out an insurance policy that covers that structure in case of damage.

TIP! Flood insurance may not seem necessary if you don’t live in a high-risk area, but it could be a good idea anyway. Living in a low-risk area for floods does not mean that flooding will never happen to you.

The amount you pay on a home isn’t what should be insured. The value of your land shouldn’t be included in the coverage. Ask for coverage based on how much it will cost to replace your home and the contents of it.

Of course, it’s much more than their strange and foreign words that make dealing with insurance companies a bit worrisome. It’s the fact that they just may literally hold your future in their hands. Use the tips you just read to make sure that you’re as well protected as you can be and also, that you’re getting a fair price on coverage.