8 Easy Tips for Cheaper Home Insurance
What do you do when faced with an insurance claim? Follow these tips and you can save money.
1. Shop around for the best rates and coverage
2. Ask your neighbors about shared homeowner's associations, as they may be a cheaper option than your current insurer
3. Consider adding your partner to the policy if they are homeowners too, as married people often pay less than unmarried people 4. Contact companies like Progressive, Safeco, or State Farm to see if they offer discounts for policies that include pets or renters insurance 5. Keep a website handy for checking out each company's rates before you sign up 6. Resurface any crawl spaces in your home to avoid future problems 7. Ask your insurance agent about catastrophe coverage and other enhancements that you may need 8. Schedule an appointment for your home's 10 year inspection
As you can see, there are many things you can do to save money. Hopefully, with all this information in hand, you will be able to make a great decision when it comes time to buy your home insurance policy.
* Required fields * Name: Email: Message: What is 2 + 3? * : Submit
How much can I pay? How much do I have to pay each month? If the monthly premium is too high for me, then quotes from other providers might be worth looking into.
I am looking for an affordable plan. How can I get one? You need to consider a plan that is covered by your current home insurance policy. Read over the coverage required by your current provider and see if you can find some coverage they don't offer.
My insurance company is offering another company's plan for cheaper price, but how can I make sure they are not taking advantage of me?
The quote might be a good offer, but perhaps the company has other options that aren't too expensive and would be better for you. You should ask them about it and compare the terms.
I would like to switch my insurance coverage to this new company but I don't know if this is going to affect my home insurance rate. What do I need to know about this? Home insurance rates usually are set by the provider, and they won't be affected by a switch in plans unless you request an upgrade. If you are thinking of upgrading, make sure that the plan you select is covered by your current provider.
Check out this article for more information: http://www.insuranseekers.com/8-easy-tips-for-cheaper-home-insurance.html
Is home insurance the same as renters insurance? Home and renters policies are actually two different forms of insurance. Homeowners insurance typically covers your house, its contents and the outside of the building in case of damage or destruction, while renters insurance typically only covers your personal possessions inside the rental unit. The exceptions are when you own expensive items, such as a piano or jewelry collections, which may be covered under your homeowners policy. Sometimes homeowners policies will also cover an addition, such as a second house or guest house on your property, but in most cases it is a separate policy.
Should I get homeowners insurance? This is a common question that most people ask themselves when purchasing a policy. Get it if you own a home or are planning to buy one. Homeowners insurance provides coverage for things like fire damage, loss of income due to your absence and stolen jewelry in case you forget to lock the door. It also can cover the cost of repairs to the structure of your home, its contents and the structure itself if it gets damaged or destroyed. Renter's insurance typically covers personal effects inside the rental unit (e.g. clothes, furniture, cooking utensils, etc) and is valid for 90 days from the date of the move in. Renter's insurance isn't needed if your renter pays a security deposit or rent allowance in addition to the monthly rent.
What is a "bundle" and why should I pay for it?
The words "bundle" and "package" are sometimes used interchangeably (for example when shopping for policies), but package means different things to different providers. If you have more than one type of insurance (homeowners policy and renters policy), you can often save money by purchasing a bundle or package from a single provider that offers them all (a bundle usually includes at least two types of policies).
If you have questions about your current policy, simply contact the company directly and ask. They should be happy to explain how things work and what features to look for in a policy.
How much coverage do I need? The total dollar amount of the coverage in your policy is called "limits of insurance." Limits of insurance are usually based on the square footage that makes up the home or condo you live in, and not on the actual value of your property. So if you own a house which has great value but only has wood floors, fiberglass ceilings and other cheaply made materials, you may not need as much insurance as you think.
According to a study by the Insurance Information Institute (I.I.I.), the average single person living alone paid $832 for his or her home insurance last year, and on average found coverage to be adequate. The average household size was 2.53 persons (the average family of four had 3.36 persons). A two-person household saved about $40 with a $1,000,000 limit on mortgage insurance and $5,000 with a $500,000 limit on coverage for theft.
How do I know if my policy is good? Just like any other financial institution or business, it is vital to do your homework when it comes to purchasing home insurance from an agent or broker. The first thing you need to know is that insurers are regulated by the state and your provider's license should be in good standing. All of your home insurance questions can be answered before you sign a contract by simply asking for the following:
When was the policy written? You need to know this because it determines how much time you have before something happens. If it's been a long time since the policy was created, then you may not be getting all the discounts that are available to you.
How long has this insurer been in business? If it's been a year or less, then there is a chance that this company could go under and leave you without coverage. Consider alternative providers if this is in your best interest.
Have any complaints been filed against the company? If they have, then you may want to consider switching providers.
What's the company's rating? Your research can help you find out if insurance companies are rated high or low by the I.I.I. and other institutions, such as the Better Business Bureau (BBB).
Does your company have a renewal plan? Ask about a discount plan that will help you save money on your policy for those who are eligible.
Conclusion
Home insurance is an important aspect of your financial house that shouldn't be overlooked. If you are a renter, make sure you check with your landlord to see if renters insurance is offered or required by the property management. Homeowners may be surprised to know that they can often save money on their monthly payments by shopping for a better policy and knowing what kind of coverage they need before purchasing. With a little creativity and some diligence, it's possible to find the right package or bundle that fits into your budget and provides adequate coverage for your home.
If you have any questions about home insurance, then feel free to ask them in the comments section below.
Sources:
Kerwin, Suzanne (2014).