How to Save on Home Insurances

How to Save on Home Insurances

If there is something as important as the car and life insurances, it has to be the home insurance. You can’t even afford to debate if you are a family person: it is an absolute no-brainer. When a hailstone storm rips your roof to shreds, a fire breaks in the basement or a thief steals all your valuables while you are away on a vacation, a basic home insurance policy will have you all covered in such unforeseen mishappenings.

But just because you have to buy one, you don’t have to overpay for a home insurance, especially when there are a variety of policies and discounts available. Here are some important tips to save on your home insurance:

How to Save on Home Insurances

  • Shop around for the best deal. An insurance broker can help you with companies that offer discounts, since they have databases of sources of a variety of companies. Other than that you are entitled to special discounts if you are living near a fire department or if you possess safety devices such as a security system or deadbolt locks. Sometimes sticking to the same insurer may get you a loyalty discount.
  • Increase your deductible
    Deductible is the part of the insurance claim that the insured has to pay before the insurance company gives you benefits. If you think the cost of your monthly premiums is increasing annually, you can raise the dollar value of your deductible, and in a way you are reducing the risk on your insurance provider and also reducing the monthly premiums. For example, if your current deductible is $200, raising it to $500 or even $1000 can reduce the as much as about 25% on your monthly or annual premiums. Your deductible is the indication of how much risk you are willing to assume. But the only problem is, you have to bare the damages of minor causalities till the deductible limit is reached.
  • Know the difference between replacement cost and actual cash value
    Replacement cost will insure you with the actual cost it would take to replace your home and the other personal property in it. On the other hand, the actual cash cost will consider the current value of your house as per the market dynamics. So if you take a replacement cost insurance for a laptop worth $800, then on the laptop being, you will be issued $800 for a new laptop. But if you consider a actual cash cost insurance for the same laptop, you will get the current market value for the laptop, which may be much less since the price depreciates over time.
  • Increase safety measures and check your house for repairs
    Little improvements in your house can get you a better deal with lower premiums. The insurance rate depends on a variety of factors including the structure and built of your house, wiring, plumbing and structure material. Upgrading the security system and alarm system may also help. Also, quit smoking. The insurance companies believe that the majority of the fire cases are due to irresponsible smoking.

Reduce your home insurance costs and see how your savings add up!

Find The Home Insurance That Suits You

It does not matter if you have a small or a big house, you would still need to get it insured. Choosing the right insurance plan may be tiring and confusing. That’s why you need to identify your needs and compare different insurance quotes. It is crucial to find the right balance so that you would not be under- or over-insured. Before you talk to an insurance specialist, here are some points you need to consider.

Don’t forget to do your homework before choosing an insurance plan:

  • First of all, educate yourself on your neighborhood conditions. Find out more about annual floods, wildfires, earthquakes and any other natural disasters;
  • Secondly, you need to define what kind of house you have (in terms of insurance categories)
  • Thirdly, you need to estimate your valuables, antique furniture and expensive electronics
  • Don’t forget to indicate any recent renovation works before you update your insurance plan.

Make a list of information that should be included in your insurance plan. For example, if your area suffers from regular hurricanes and landslides, make sure you include it in your insurance plan. This way you will get the right insurance plan for your house.

Evaluate your needs with the following aspects:

Neighborhood Conditions

Both weather conditions and crime rates will affect your insurance plan. Obviously if you live in the area prone to natural disasters or a neighborhood with high crime level, you would have no choice but to pay more on your insurance. Therefore, you need to consider these aspects before you decide to buy a house.

Insurance companies will always calculate their risks in accordance with local conditions.

Home Type

Big spacious homes are more expensive and thus require a better insurance plan. Take into consideration your home’s value and how it will change in the next couple of years, as it would be more expensive to repair your home after a disastrous flood in the future.

Estimate your Valuables

Keep an inventory of your valuables. Don’t forget to include all the antique items in your insurance plan. Even though the value of electronic equipment would decrease in a couple of years, it would still cost you money to replace these items in case of burglary. Don’t undervalue your possessions!

If you renovated your home, or added some additional features to it, don’t forget to include these items into your insurance plan: the value of your property will increase accordingly. Keep in mind that insurance policies keep changing every couple of months, try updating your insurance plan on a yearly basis. It would prevent you from overspending and underestimating your property.

Only you will know what kind of insurance would work for you. You lived in your house for a while and know its flaws and weak spots. Don’t take a risk; find the right insurance plan to secure your property! Websites like homeinsurance.com will give you a chance to compare different insurance plans. Use this information to find the best homeowner’s insurance policy that would protect you from the common natural disasters and burglary – it might take some time, but it’s worth it!

 

This is a guest post by Lisa Peteres, an occasional guest-blogger and a full-time personal finance expert. If you have any questions, feel free to drop her a line in the comments below!

Home insurance can help cover your home – even for the most unlikely of events

home insurance, homeowners claimIt may seem odd to have house insurance in place to cover your home from a car driving into it – or damage from a herd of animals. But events like these can happen and it pays to be prepared.

So when looking at home insurance quotes, consider the following possibilities:

Vehicle or trains

Although most of us would never expect a car, motorbike, lorry – or even a train – to hit our homes, it can happen. Especially if you live near a road or railway. And if it does happen, it could cause hundreds, even hundreds of thousands of pounds worth of damage. Thankfully, most insurance companies will cover your home if this does happen. Make sure you check your policy, and if you don’t already have a policy in place, look for house insurance quotes online.

Wild or stray animals

Whether it’s just one, or a whole herd, animals can potentially cause damage to your home. A lone bullock or a flock of sheep damaging brickwork and fencing – or a bird flying into a window. It’s good to know that most house insurance policies will cover you for this kind of damage, so long as domestic pets are not the cause.

Falling trees and branches

However beautiful trees are, if they fall onto your house, they can wreak havoc on its structure. After all, they will probably weigh several tons at the very minimum. Especially in extreme weather, trees can sometimes fall, so it’s best to be on the safe side and make sure you have adequate insurance cover in place should the worst happen.

Damage from airplanes

Most house insurance policies can also cover your home if it were to be hit by an aircraft or other aerial device. They can also cover you if anything falls from an airplane and hits your home. You may think it will never happen to you, but do you want to take the risk? Check your policy to be on the safe side.

Forces of nature

Nature is unpredictable. Storms, floods, earthquakes and lightning can all damage the structure to your home. Starting over again after a natural disaster has ruined your home can be too stressful to even consider. So make sure you read the details of your house insurance policy to make sure it covers you for damage from Mother Nature too.

This may seem like a list of the worst-case scenarios. But just because they are rare, it doesn’t mean that they don’t ever happen. Don’t fall victim to the unexpected and ensure that your house insurance is in place – and up to date. Get quality contents and buildings insurance– it will help to give you extra peace of mind.

Photo by: RevVodoo