As a homeowner, you know that protecting your home and it’s contents is a priority. But, you also need to know that you aren’t being ripped off and over-stepping the limitations of your budget. Use the simple tips below to serve as a guideline in finding the perfect policy for you.
In order to ensure your insurance claims are processed correctly, you should keep an updated list of all of your home’s contents. People that have had a tragedy in their home will let you know how difficult it becomes to recall everything that was lost. The simplest way to get pictures of everything is to open your closets and snap a few photos.
Make sure your policy includes flood insurance. Flood insurance is not always included in a homeowner’s policy, and recent events make it clear that floods do happen in unexpected places. Losing your home and belongings to unforeseen flooding can be a nightmare, which is why it’s important that your insurance policy covers this.
If you are 55 for older, you can save money on your homeowner’s insurance policy. Senior citizen discounts for people 55 are offered by companies. If you don’t have a company that offers this, then you should look elsewhere.
Do your research about the stability of different insurance companies before selecting one. It’s important to ensure that the company is making enough money to pay you in case a claim arises. Do this quarterly after you open the policy as well.
Get a “guaranteed replacement value” policy. This way, you are ensuring that you’re able to remain in the home you worked so hard to have. Policies of this type are intended to pay for a replacement home that is roughly equal in value to the one you lose in a disaster.
Raise your deductible to lower your premiums. You will want to do your homework on this, however, as smaller claims such as broken windows or damage from a leaky pipe may end up costing you, as you will be required to pay them.
If your budget allows for you to assume the risk of a higher deductible for your insurance coverage, then your premiums can be substantially lower. This increase will be beneficial especially if you have an emergency savings fund.
When you buy a house, get your mortgage payments to include one month’s worth of homeowner’s insurance payments that can be placed into escrow. Since the money is going to be in this account already, you will not have to worry about digging up money every time the payment is due.
When dealing with homeowner’s insurance, be sure you’ve got enough to rebuild your home. The price of building homes is subject to inflation. Keep this in mind just in case something does occur, so you do not fall short in funds needed to rebuild. This has to be in place before the worst happens.
If now is the time for you to purchase home owner’s insurance, the above advice will be of great use. You need to know what is involved in getting a policy and what you need to be focused on most in covering your property from loss.