Being able to purchase your own home is the American dream, and such a dream requires a significant financial investment. When you’ve worked so hard to buy your first home or have upgraded to something bigger, it pays to put a bit of time and effort into what will protect your hard-earned investment – your home insurance. Correct home owners insurance coverage can be expensive, but with the following tips you’ll be able to get the best deal possible as well as peace of mind.
Most importantly, it is best to shop around with several different insurance providers to get quotes. Where to start can be quite daunting, and a good starting point would be a discussion with friends and family as to if they are happy with the coverage from their chosen companies. The Yellow Pages, state insurance department and National Association of Insurance Commissioners (NAIC) will enable you to find providers in your area. To get a more well-rounded idea of the figures getting on-line quotes are also an excellent option. Independent consumer can give you an indication of the quality of the services offered by the various providers. Whilst ideally you would like the cheapest possible homeowners insurance coverage with gold standard service, unfortunately the two don’t often go hand in hand. When shopping around, try and find the best compromise between cheap premiums and quality service.
Raising your deductible reduces your insurance rate, since it means that you have to pay more towards the loss prior to your policy being paid in the event of a claim. Most deductibles are between $250-$500. Increasing your deductible to $1000 can mean you reduce your premiums by up to a quarter depending on the company. Bear in mind that certain areas which are more prone to natural disasters may require a separate deductible for the specific risk in your area. Make sure that you set your deductible within your means because you certainly don’t need to be asked to pay a deductible that you can’t afford.
Always consider the insurance cost when buying a home. The geographical location, age and even materials your home is made of can all impact on your insurance premiums. Generally newer homes in areas that are less prone to natural disasters have cheaper premiums. Enquire with your chosen insurance company what measure you could employ to reduce the likelihood of damage to your home in the event of a natural disaster. Companies in disaster prone areas may offer discounts if you undertake modifications or retrofitting. Older homes can which are modernized may also be enable discounts on the insurance premiums.
Don’t insure the land your home sits on. Whilst your new home is subject to numerous perils which insurance is designed to cover for, the land, however, is not. Including the value of your land in the calculation of the insurance can raise your premiums substantially, and the extra cover is essentially wasted.
Increasing security by placing alarm systems and deadbolt locks can reduce premiums by 5-15% depending on the nature of the system you install. Always ensure that you check with insurance provider to check how much the discount would be, as well as their preferred alarm system. It makes no sense to fit a security system only to find that your insurance premiums wouldn’t be reduced accordingly.
Look into staying with a single insurance company, as in this case loyalty pays. The discount varies between insurance providers and the period of loyalty, but it always pays to check. Significant discounts can be obtained if you take out car and homeowners insurance coverage with a single provider for a period of a few years. When taking out multiple policies with a single company, ensure that the combined cost of the policies is less than the cost of obtaining similar policies with different providers. Always ensure that your loyalty is truly paying off by periodically doing your research on what other insurance providers are charging for similar or identical policies.
Regular assessments of your coverage ensures that you have an appropriate level of coverage. It’s also a good idea to update your policy should you either purchase or sell a valuable item. Ideally, your insurance policy should reflect the value of your home and contents at all times.
In conclusion, home owners insurance coverage is an essential to provide security to the most valuable asset you’ll ever own. It is important when selecting a policy from an insurance provider that you take into consideration exactly how much cover you’ll need as well as the cost of insurance when purchasing a new home. With the above tips on how to reduce your insurance premiums, you’ll be in the best position to obtain the most appropriate coverage for your home.