If you need to purchase a home owner’s insurance policy, there is an abundance of information available. Not all of it is clear, or even helpful. We present to you a list of shrewd tips that will make it a bit easier for you.
To save money on your homeowner’s insurance consider the costs of construction projects before you begin building. Structures with wooden frames cost more to insure because they have more risk of burning, while structures with steel frames cost less because they are sturdier and hold up under adverse weather or other conditions.
No mortgage? Lower insurance rates! Clearing a mortgage may not be an immediate possibility, but rather a long-term goal to keep in mind. Someone who owns their home outright is golden in the eyes of an insurer.
If you need to file a claim with your homeowner’s insurance company, do so promptly. Quickly respond to any request for information as completely as you can. The more information the insurance company has, the faster they can process your claim. Also, much damage suffered by homes will only worsen with time, meaning that if you let it sit, the cost will be higher.
One advantage of installing or replacing the smoke alarms in your house is that doing so can help lower the cost of your homeowner’s insurance. If you have an older house, you could save up to 10 percent a year. You may also get a further discount by putting in additional alarms throughout your house.
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.
Before a flood strikes, you need to know what to do to be sure that your home is insured against floods. The only way to insure against the risk of floods in the US is via the National Flood Insurance Program (NFID), administered by FEMA. Insurance companies work with FEMA to sell coverage to homeowners. Therefore, always have a plan in place to cover flood protection, and know whom to contact at your insurance company in order to arrange for it.
Always get the “guaranteed replacement value” stipulation in your policy. This gives you the cost of a full rebuild of your home, regardless of what destroyed it. One of the best benefits of this is that even if inflation occurs in the construction market, the insurance company will be the one to bear the extra costs.
Changes in your area might decrease your home insurance premiums. Having a fire station close to your house or a fire hydrant within one hundred feet of your house, will decrease your rates. As soon as you discover one of these changes, notify your insurance company so they can reduce your premium costs.
We don’t claim that this a comprehensive list of the advice that you need, but it should get you going in the right direction. Why not make a few notes outlining what tips you think that you can use? Try to apply some of these suggestions – we are confident that you can get a better deal.