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Apr 17

How to purchase the type of home owner policy that you need

How to purchase the type of home owner policy that you need
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.

To make sure that you are paying the lowest amount on your homeowner’s insurance, compare the cost of your insurance policy to another company’s policies at least once a year. You should also review your existing policy and mark any changes that may have occurred which could lower your premium.

There are two separate techniques guaranteed to reduce the price of your insurance premiums. Start with installing a new security system inside the home.

That will cut the premium you pay by about five percent. However, you must prove to your insurance company that your home possesses an actual security system that is properly working. This proof can be either a bill or contract. Also, make sure you have smoke alarms installed in the house. This may save up to 10% annually.

“If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure”, told us Victor, an expert from Maison bois gamme In Design.

As your needs change, reevaluate your homeowner’s insurance policy. Look over your policy again to check on coverage for different valuables. If you have special items that you want to ensure they are covered, you can ask for a separate rider to cover those against theft.

When buying a homeowner’s insurance policy, what is excluded from coverage is sometimes more critical that what the policy does cover. Flood coverage, for example, is not typically covered in most homeowner’s policies, but can be purchased as a separate policy. The same is true for other natural disasters such as earthquakes.

If you need to file a homeowner’s insurance claim, you’ll need to prove your losses. A good way to document your possessions is to take a video while walking through your house, describing the items. Then upload the video to a safe, non-public place online, so it won’t be destroyed if anything happens to your home. Scan receipts for your possessions, too.

If you are a senior you may get some discounts. A lot of insurance businesses offer senior citizen discounts, and they usually start at age 55. If your insurance provider does not offer this, it might be time to search for something new.

To reduce renter’s insurance, safety should be your priority. Having burglar alarms, fire extinguishers, and fire detectors on property can lower your premiums. This can help from a security and monetary perspective.

A security system can make your home look safer, saving you money on insurance. This will help reduce what you pay per year by 5 percent. Only invest in a system hooked up to the police or security company so any issues will be well documented.

Your premiums will go down once your mortgage is paid off. Owning your home will impress insurance companies because they’ll expect that if you fully own your house, you’ll take perfect care of it.

You can place one-twelfth of your premium into an escrow account each month through your mortgage payments. This ensures you can pay the insurance when the bill comes due.

Consider the rebuilding costs for your home when you decide on a homeowners insurance. The price to build a home rises every year. Keep this in mind just in case something does occur, so you do not fall short in funds needed to rebuild. It’s best to do this before an issue arises.

Try looking for multiple policy discounts in your home owner’s insurance policy. There are many insurance companies that offer a 10% or more discount to customers that have other insurance policies under one roof. Think about getting a quote for other insurance types from the same company that you received your homeowners’ policy. You could save on two annual premiums.

If you have a wood burning fireplace or wood-stove, consider switching to gas or alternate fuels to reduce home owner insurance premiums. Often, wood burning heat sources result in a surcharge or additional premium. Changing to a different fuel source can prevent this additional charge from being added to your policy.

Keep the humidity low in the home to cut down on the possibility of mold. Most insurance policies do not cover the removal of mold. Getting rid of mold can be very expensive if you do not take care of it quickly. Keeping the humidity level could save you thousands of dollars in the near-future.

Make sure that you do your research before you purchase insurance for your home. Do not underestimate the amount it will cost if you need to rebuild your home, because you could end up in a bad place. Ask a professional for help in understanding what would be required to re-build your home before you buy a homeowner’s policy.

Save money on your home owner’s insurance policy by choosing a higher deductible. The more of your losses that are covered with your own cash, the cheaper your rates will be for the insurance policy. Ask your agent for property credits or any other discounts that might apply to your home owner’s policy.

When looking for home owner’s insurance, determine your rate. Your insurance agent will need a lot of information from you, to be able to give you the best rate for your policy. Insurability includes such things as how old the house is, how old the plumbing and electrical is, the roof type, the square footage, and many other details of the house.

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.

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