Many 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 for insurance companies. Don’t fall victim to the confusing terminology, and use these tips to help you purchase the right home insurance plan.
If you struggle to make the monthly payments on your homeowner’s insurance, consider raising your deductible. Like health or auto insurance, having a higher deductible means lower risk to the insurer and lower monthly rates. However, this should only be used with homes that are not likely to suffer minor maintenance issues, as the homeowner ends up with those costs.
Suppose you have recreational amenities in your backyards such as pools, hot tubs, trampolines, or other contraptions that are likely to cause injury. In that case, these can raise your insurance premiums, sometimes by 10 per cent or more. Consider this when purchasing a property with these things or adding them to it.
To protect your personal property in a rented residence, you need renter’s insurance. The landlord or property owner will have insurance to cover losses on the building but not on the items inside your unit. This is your responsibility. Fortunately, renter’s insurance is quite affordable and available from most insurance companies and independent agents.
A valuable tip for anyone needing to file a homeowners insurance claim is to keep detailed records of every contact made with the insurance company. It is essential to keep a log that documents the time, date, and substance of every phone call, email message, or piece of correspondence. It is also wise to confirm in writing any promises received or agreements made during such communication to prevent disputes or misunderstandings during the resolution of the claim.
Flood insurance is an extra insurance type that can genuinely help those who live in high-risk areas. It may add a bit more to your total premium costs, but it can save you from losing everything in case of a flood. In high-risk areas, flood insurance must help you protect your investments.
Your homeowner’s insurance premium is dramatically lowered if you have an alarm or security system installed. These systems are usually not expensive to install and will provide you with a feeling of safety while you are away from home.
Safety features added to your home decrease the overall cost of insurance. Smoke alarms, fire extinguishers, and burglar alarms can provide additional discounts on your insurance. Keep these items updated and know how you should use them.
When planning a significant home addition or renovation, consider insurance. The materials and techniques you use in making additions can significantly affect your future insurance premiums. Sturdy, fire-resistant building systems like concrete and steel will cost you less to insure than standard wood-frame construction.
Pay your home insurance yearly instead of monthly. Breaking it in to monthly payments may make it seem cheaper, but if you save the money to pay it in full for the year, you will get a discount for making that payment. This can save you a good bit of money over the years.
When filing for fire insurance, make sure your policy covers damage sustained to cars during a fire. Many people do not do this and have to pay for car damages after a fire. If your car happened to get damaged, make sure to put the type and amount of damages on your claim.
If valuable items are kept in your house, be sure they have been included in your homeowner’s policy. Standard policies cover your home’s structure and most personal belongings but might not cover high-value items. Your policy limits should remain above the estimated value of any personal items, or additional coverage will be required to replace the damaged belongings.
Consider raising the deductible on your homeowner’s insurance. Like other insurance policies, the higher the cost, the lower the annual premiums. The only thing to keep in mind is that with a high deductible, you may have to pay more out of pocket for more repairs.
Did you know that quitting smoking can lower your homeowner’s insurance premiums? Smoking is an excellent risk of accidentally causing damage or completely burning down your home, so it will increase your premiums if you smoke. Let your insurer know when you’ve quit smoking (how long you must have quit will be up to them to tell you.)
Don’t forget your power tools when creating your home owner’s inventory! Items in your garage or shed tend to be expensive, including your lawn implements or snow blowers. Photograph them and keep track of how much you paid for them and when you bought them so when you have to file a claim, you’ll have the information handy.
Make sure your pets are covered on your home owner’s insurance policy. Depending on the breed, some dogs may be excluded from coverage on a policy. It is better to know upfront if accidents or damage caused by your pet are not covered than to find out after a claim event.
When keeping records of your possessions in case you need to place a claim, take photographs of any critical or big-ticket items. The photographs can often prove value and locate similar items to find replacement costs. Keep a duplicate copy of the photographs in a safety deposit box at your bank.
Of course, much more than their strange and foreign words makes dealing with insurance companies worrisome. It’s the fact that they may hold your future in their hands. Use the tips you just read to ensure that you’re as well protected as possible and getting a fair price on coverage.
