Homeowner’s Insurance – Do You Have Enough of It?
A homeowner’s insurance policy can get quite complicated, as many factors figure into a home insurance policy. Many homeowners don’t realize that their homeowner’s coverage could change due to home upgrades or rising building costs, which can leave them under-insured in the event of a disaster. Those homeowners out there who have actually faced disaster will tell you first-hand just how important homeowner’s insurance is. It is a necessity to have homeowner’s insurance now and almost all mortgage companies will not finance real estate without proof of homeowner’s coverage for the fair value of the property.
Homeowners who live near earthquake fault lines, flood areas or high drought areas can expect to pay more for homeowner’s insurance. These areas are also known as “major waterways”. However, no matter what the price you have to pay, it is best to have a homeowner’s insurance policy for optimal protection. Therefore, I want to give homeowners some helpful advice to make sure their homeowner’s insurance is sufficient to meet their needs.
Listed below are some great ways to make sure you have the right insurance coverage for your home:
· Raise Your Deductible – A homeowner’s insurance deductible is similar to car and health insurance. The higher the deductible, the lower the annual premiums you will pay. However, small problems such as leaky pipes, broken windows or damaged sheetrock that adds up to only a few hundred dollars to fix will be coming out of the homeowner’s pocket.
· Check for Multiple Policy Discounts – Most insurance companies offer a 10% discount to customers who have a combination of two or more policies such as home, auto or health insurance. So, shop for the best quotes. You can save even more by shopping around.
· Review and Compare Your Policy Regularly – At least once a year, compare your insurance policy to other insurance policies. If you find a cheaper policy, go with it.
· Plan Ahead for Construction – If you’re planning for a home addition or any another addition to the property, take into consideration the cost of materials. Typically, these materials will cost more than when the original home was built, which will cost more to insure. A quick phone call to your insurance company will add the extra insurance you need for your home’s addition.
· Maintain Smoke and Security Alarms – Having these two items will save you on your homeowner’s insurance. Smoke alarms will usually save 10% on annual premiums and are very important in case of fire. Security systems can save 5% on annual premiums. You will also need to provide proof of your monitoring system with a bill or contract to the insurance company.
To help avoid delays in getting your insurance money in the event of a disaster, make sure you document everything. Videotape and photograph the entire contents of your home and the home itself. Purchase a fireproof box to store these photos and videos in. You should also consider storing copies at a relative’s house or a safe deposit box.
No matter where you get your homeowners’ insurance from, you should make sure you have the proper coverage. No skimping. This insurance is a necessity.
Tags: homeowner tips, homeowner's insurance, homeowners, house insurance, insurance policy discounts
You can comment below, or link to this permanent URL from your own site.