If you are thinking about purchasing a home, you need to do some research on home owner’s insurance. First time home buyers may have more questions than answers when it comes to these policies. Keep these ideas in your head as you shop.
When considering insurance for your home, it may be beneficial to have an alarm system installed. Not only will this be beneficial for your own safety, but your insurance rates will reflect the added security as well. After providing proof that your system is monitored by an agency, you may qualify for up to 5% off your rates.
Install a security system to help lower your homeowner’s insurance premium by 5%. Your security system must be watched over by a central station or tied directly to your local police station, in order to get this discount. Your insurance agent will want to see proof that your security system is being monitored.
You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.
If you have other people living in your home, check your homeowner’s policy to find out what the coverage is in case of a disaster. Policies may cover only the possessions that you claim. Confirm what is covered or you may end up cutting your roommate a check after a disaster.
Consider raising the deductible on your home insurance policy. A higher deductible on your insurance policy can significantly lower your annual home insurance premiums. Unfortunately, by raising the deductible, your home insurance company will no longer pay for small claims, such as broken window repair, leaky pipe repair and minor wind and flood damage repairs.
Ensure that your home is adequately protected with the proper number of smoke detectors, and you could qualify for a discount on your home owners insurance premiums. Installing more than the recommended number of smoke detectors can also result in a discount from some insurance companies. Check your policy to see if qualify for a reduction in your premiums.
Consider a policy that offers guaranteed replacement value when shopping for home owners insurance. Guaranteed replacement value means that if your home is destroyed the insurance company will pay the cost to rebuild it, regardless of what that cost is. Considering that the cost of construction often increases over the years, this is especially important if you will be in your home long term. Having such a cushion can offer you true peace of mind.
A home is the largest, most important purchase you’ll make in your lifetime. With so much at stake, it would be unthinkable to let your investment go unprotected. The most logical protection you can provide for your new home is a strong insurance policy that will take care of it, but you need to make sure you’re being adequately covered. Use these tips to shop for the best policy available.