Archive for August, 2012
Finding a policy that will protect your property
By David Ng
One of the most crucial parts of the homeownership process that people tend to overlook or dismiss is attaining home owner insurance. You may not even get service from your mortgage company until you have proper insurance, so start investigating insurance policy options now. Consider these homeowner’s insurance tips to help you.
- Finding the right insurance for homeowners begins with consulting a representative to determine general insurability and the best rate for your policy.
- Investigate the best way to raise the deductible and lower annual payments.
- Seek discounts by installing alarm systems.
- Finally, compare differing policies to make sure that you are getting the best deal.
Figure out your needs
Your insurance agent determines the type of insurance for homeowners by going through a series of questions. Prepare yourself to disclose the home location, how old the house is, the year of installation for plumbing and electricity, what the roof is made of, the square footage of the house, and how many insurance claims have been made during the previous five years.
Replacement Coverage Cost indicates a percentage of additional coverage over the insured amount. This means that the insurance organization protects the homeowner from having to pay added costs to rebuild the house in case of a fire or other damage.
If you take out home owner insurance for 200 percent, you get double the coverage. Liability coverage protects you against claims from bodily injury or property damage to other people. While having up to one million dollars in liability coverage is possible, it is more common to have $300,000 in liability coverage.
Depending on location, to raise it to $500,000 can run you about $20 more per year. If you have property of higher value, an umbrella policy for house insurance can give you an additional $1,000,000 in liability coverage with a premium of between $300 and $500 per year, depending on location.
Raise the deductible
Save money by raising your deductible and lowering your annual premiums. The downside to this is having to incur smaller costs yourself, such as broken windows or damage from leaks. Most mortgage companies do not let you go higher than a $1000 deductible.
You can most likely attain a discount from your insurance company starting at a $500 deductible. The discount augments as the deductible increases.
You may be able to attain a discount of 10% or more by applying for multiple insurance policies – that is, health insurance and car insurance – within the same company.
Homeowners can lower their annual premiums between 5 and 10 percent by installing smoke alarms and other alarm systems, such as a burglar alarm connected directly to a police station and fire alarm that reports to a fire station.
You will need to submit proof of these to your insurance company. Consult your insurance agent to find out how many credits for which you are eligible.
Compare other insurance policies to your own every year to make sure you continue to get the best rates. Notice any changes in your situation that could possibly lower the premiums of your current policy. You may have recently installed alarm systems that could lower your premium.
Notify the insurance company and submit receipts to raise the chance of getting a lower premium. Your insurance rate can benefit from changes in your environment. If an additional new fire hydrant has been erected on your block, this could lower your premium as well.
Use Internet resources
Continue educating yourself by seeking more homeowner’s insurance tips online and learn how to get the best rates. You can save time and money – what more could you ask for?
Article from http://www.realtor.com