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Tips to Make Getting and Maintaining Home Insurance Easier

Home insurance protects homeowners if any damage occurs to their home. Every homeowner should have home insurance, and some mortgage lenders require it. Below are a few tips that you can use to make it easier to find and maintain a home insurance policy.

1. Search around.

Before committing to a home insurance policy, it is a good idea to compare quotes from different insurers. Price should not be the only determining factor when choosing a home insurance policy. If you want to get a good deal on insurance, you should look at how much coverage you will receive from an insurance policy and the discounts the insurer offers.

2. Make sure your home insurance policy provides you with a guaranteed replacement value.

Insurance with a guaranteed replacement value covers the full cost of replacing a home, so if a home’s value appreciates, you will receive the appreciated value of the home if something were to happen. It can be difficult to find an insurance policy that offers guaranteed replacement insurance, but you should be able to find a few insurers who offer it.

3. Look for discounts.

Many home insurance providers offer their customers a variety of discounts. Potential discounts can help offset the cost of home insurance. One of the most common discounts insurers offer is a discount for having multiple policies, such as auto insurance or life insurance, with them at the same time.

4. Do yearly insurance policy comparisons.

After you have purchased a home insurance policy, you should still compare policies once a year. The primary reason you should compare home insurance policies yearly is that your property’s value can increase or decrease, and you may not have the right amount of insurance for your property. It is especially important to do home insurance policy comparisons after doing home improvements.

5. Take pictures, and videotape all of your possessions and your home.

When you get an insurance policy, you should make sure you have documentation of all the property you own in case something happens to it. The insurer of your home is going to want to have evidence of what was lost, and pictures and video can be used as documentation. Make sure you update your pictures and videos every year; the pictures and videos should be kept in a safe location where they cannot be destroyed if something were to happen to your home, such as a flood or fire.

Tips for Home Insurance

Owning a home is the largest investment most people will ever make, and just like any other investment, you want to make sure it’s protected. That’s where homeowners insurance comes in. While it may seem daunting, buying homeowners insurance doesn’t have to be difficult if you follow a few simple tips.

First off, make sure you buy enough insurance to cover what it would cost to rebuild your home. This doesn’t mean getting only enough to cover the appraised value of your home. If your home is worth $200,000, it might actually cost something like $220,000 to build a similar-sized new home. Make sure, too, that your policy has an escalation clause that automatically increases the replacement value every year by a certain amount, such as 3 percent. Because of increases in materials and labor costs, that $220,000 cost is likely to increase by a few thousand dollars every year.

As insurance policies go, homeowners insurance is relatively cheap, only costing a few hundred dollars a year for the average house. That doesn’t mean, however, that you shouldn’t seek to get the best deal possible on your rates.

One way to save money on homeowners insurance is to bundle policies. For example, an insurance company might give you a discount on homeowners insurance if you also have an automobile insurance policy. Another way to save money on rates might be through affiliate discounts. If you are a member of a trade or professional group, that group might offer discounts for using certain insurance companies. You can also save money on the rates you pay by adjusting your deductible. If you would have no trouble paying $1,000 out of your own pocket if your home was damaged or destroyed, you can set your deductible at that level, which will make the monthly rate lower than if your deductible were $500.

Finally, make sure you know what your policy does and doesn’t cover. Almost all homeowners policies exclude damage from flooding, as well as acts of war or terrorism and unforeseen events, such as plane crashes. Depending on in which area of the country you live, your homeowners policy may also have exclusions related to earthquakes and hurricanes, as well. Make sure you read your policy thoroughly, including all the fine print, and ask your agent questions.