7 Tips to Make the Right Choices on Homeowners Insurance

If you own a home, it’s important to have it insured. You simply can’t take a chance with what is probably the biggest investment that you’ll ever make. Natural and man-made disasters could strike and destroy your dream home at any time and there’s nothing that you can do to stop them.

The best thing about having your home insured is that it’s protected against financial losses in the event of fire, natural and man-made disasters, and other perils. It ensures that you get back your investment so you can rebuild. Home insurance gives you the peace and security that every hardworking homeowner deserves.

Here are some tips that you need to know about insuring your home including choosing the right insurer and obtaining the proper coverage:

  • You are a statistic.

You’re a set of risks to an insurer. An insurer will base their premium on risk factors like your job, your properties, how you live, etc.

  • Determine the value of your property.

Before choosing a policy, it’s important to determine your home’s replacement cost. To get an accurate estimate, seek the help of a builder in your local area.

  • Insurers vary so do your shopping.

Like anything else you plan buying, the same product could be differently priced by different companies, but you could save more if you do your research online. Get several quotes from different companies and compare them so you get the best coverage that’s within your budget.

  • Don’t just go for the cheapest price.

An affordable insurance won’t help if an insurer takes forever if and whenever you make a claim. Therefore, you should do your research and check the insurer’s record for claims service and financial stability.

  • Know about the different discounts.

Many people waste a lot of money because they just don’t ask for discounts. So ask for them! Most insurers give out discounts to reward behavior that reduces risks.

  • Your insurer may not necessarily be your friend at claims time.

Your own idea of a fair compensation may not go with that of the insurance company. Their job is to financially restore you as a homeowner while yours is to verify your losses and get the amount that you deserve.

  • Do some preparations before filing a claim.

Always make sure that your policy is updated. Reread it many times before filing a claim so there would be no surprises.

You can obtain home insurance policies from non-life insurance companies. Deal only with legitimate insurers and remember to get quotations from several companies and give them the same amount of information about your home so you could accurately compare them.

Choose wisely what’s suitable for you. Though cost is a big factor in choosing, it must not be the sole basis. Insure your home with a company that you can trust.

6 Ways to Lower Your Home Insurance Costs

The cost of homeowner’s insurance coverage continues to increase. In fact, in the past few years, there has been a great increase in price that policies that cost somewhere around $325 are now two to three times that amount, putting the burden on many household’s budgets.

Here are 6 ways to lower the cost of your homeowner’s insurance:

  • Increase your homeowner’s deductible.

What is a deductible? It is the amount of risk that you have agreed to accept before your insurer begins paying on a claim. Because the cost continues to increase, it makes no sense anymore to let the insurer assume all the risks. Increasing your deductible, if you have a lower one, allows you to save as much as 25% on premiums.

  • Buy several policies from the same company.

Consider buying auto and homeowner’s insurance policies from the same company. Some offer 5 to 15 percent less if you purchase both types of policy from them. However, also take time to research and ensure that the price is lower compared to buying two policies from different insurers before coming to a final decision.

  • Ask about discounts.

Did you know that you are eligible for discounts? Ensure that you receive all the discounts for which you’re entitled to. For instance, you get discounts if you install additional smoke detectors, locks, security or alarm systems, fire extinguishers, and other measures inside your property. If you are more than 55 years old and retired, you are also entitled to an additional 10 percent discount.

  • Don’t buy coverage you don’t need.

It doesn’t make sense buying a coverage that you don’t need. For instance, buying coverage to safeguard yourself against risks that you are unlikely to experience like getting an earthquake coverage in an earthquake-free area or adding a jewelry floater even if you don’t have expensive jewelry in the first place.

  • Make your property a better insurance risk.

Ask an agent about what you need to do to make your property cheaper to insure. One example is making some changes that lower the risk of damage in the event of windstorms and other natural calamities. Another example is updating your old wiring or heating system which could reduce the risk of fires and thus reduce your premiums.

  • Make sure your coverage is updated.

Every year, dig out your current policy and review the details before it is due to renew. Call your agent and inform them about any changes in your condition that happened within the year.

Homeowners face a lot of expenses but paying for a home insurance policy shouldn’t be a burden. Though home insurance has always been competitive, shopping around is the tried-and-true way to save money.