Everybody who owns a home needs to insure it. Not every homeowner knows how to get the best policies and the best bargains though. Homeowner’s insurance is such a broad field and the costs are so high, just a little learning can have a very big effect. Here are a few tips to stretch your insurance dollar further.
You may think you don’t live close enough to a body of water to have to worry about flood insurance…but think again. Before you decide you don’t need it, assess the flood risk for your geographical area. You will be surprised at the unexpected parts of the country which have experienced floods in the past year or two, and if you live in or near on of these areas, flood insurance may be right for you. FEMA.gov is one site that provides information on flood risks for all parts of the U.S.
You might be able to get a discount on your homeowners insurance if you have a security system or alarm. It’s not enough to have local alarm — to qualify for the discount, you usually have to have a monitored service, and the insurance company will ask for proof of this, so make a copy of your monitoring service contract to give them.
Don not, under any circumstances, allow your hazard insurance on your home to lapse. Most mortgage companies have a clause in the agreement you signed that in the event you don’t pay it, they will find a new policy for it, sparing no expense, and charge you for the premium. It will usually be at least double what you were paying before. You are better off doing whatever you need to in order to keep your policy current.
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.
Flood insurance is an extra insurance type that can truly 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. High risk areas are flood insurance musts to help you protect your investments.
Install a security system to reduce the cost of your home insurance. By installing a burglar alarm that is linked to a local police station you can decrease your home insurance annual premiums by 5% or more. Make sure that you inform your insurance company that you have a security system installed and be aware that they may ask you to provide proof.
Hopefully these homeowner’s insurance tips have been of some benefit to you. This insurance is for helping you in case of disaster; you want to get the best, most cost-effective coverage you can. If you ever need to make a claim, you will appreciate every bit of time and effort you take to find the best deal on homeowner’s insurance now.