There are many, many reasons that you need to be protected by insurance as a homeowner. Even if someone is trespassing on your property and gets attacked by your dog, you could be on the hook for the hospital bills. It’s crazy, yes, but that’s how the system works. Use these insurance tips to make sure you’re always protected.
When shopping for homeowner’s insurance, be sure to get a policy that offers guaranteed replacement value insurance. This means that your policy will definitely rebuild your house if it were completely destroyed. As construction costs increase over time, it may cost more to build your house now than it did when your home was new. Guaranteed replacement policies absorb these costs.
If you have a child in college, check with your insurance agent about whether the child’s residence requires a separate insurance policy. Nearly all policies will cover belongings stored in a dorm room, while the regulations about off-campus apartment living will vary widely from policy to policy, even within the same company.
One advantage of installing or replacing the smoke alarms in your house is that doing so can help lower the cost of your homeowner’s insurance. If you have an older house, you could save up to 10 percent a year. You may also get a further discount by putting in additional alarms throughout your house.
Detailed text and photographic documentation makes it easier to file claims for high-priced items. Although the process is time-consuming, it will be well worth it if doing so means that you will be reimbursed for the full value of your lost property.
If your home is damaged in a fire or other disaster, you’ll need a place to stay until it is repaired. Find out if your homeowner’s insurance covers hotel stays or other lodging. Read your policy carefully to determine if you’re covered, and find how much you’d have to spend to get this coverage if you aren’t.
Fire Alarms
Having fire alarms installed in your house may reduce different fire types. The reduction is due to the added security against fire. Some will even give you a bigger discount with installing several fire alarms.
Find out what kind of home replacement coverage is offered on your home owners insurance policy. Some will guarantee replacement while others will limit the amount of money you will get if your home is destroyed. Some insurance companies have a cap on the payments to a percentage of the face value of your policy.
Check any policy that you are interested in for a “guaranteed replacement value” and only accept the contract if it is applicable. This guarantee prevents your lost home from being replaced with a mobile home. That insurance will allow you to completely rebuild a similar, new home.
A higher deductible can mean lower insurance 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 you look only at cost when seeking homeowner’s insurance, the company you choose may well be one where you deal only with a distant call center. But if a tree falls on your home, you want someone with an office nearby, someone who will actually come out and look at the damage.
Consider your insurance premiums when you add improvements to your existing home. In most cases wood structures are more expensive to insure as they are extremely flammable. Consider additions using concrete, brick or steel frames as their insurance premium is significantly lower. Other potentially dangerous improvements, such as swimming pools can increase your premiums significantly.
If your home is paid off, it can reduce your homeowner’s insurance premiums. Although it may be difficult to pay off, it can save you a ton of money, because your premiums will go down because you have more at stake in your home since you own it.
When it comes to homeowners insurance, make sure you update it if your life changes. If you go through a divorce, make sure the right people are on the policy. If you a built a playground or added something to your house, you will need to update that, too. Being current is what you need to be!
Companies with a good reputation for customer service are those you want to choose to insure you. Try to find a company that will process your claims without a hassle. Consumer organizations and online forums are great places to learn about the reputations of different companies.
Just about anything can happen and leave you on the hook for some big bucks. Unless you’re protected, you could end up losing your house for multiple reasons. Follow these tips and use them to work up a solid insurance policy that’s affordable and that provides ample protection for your home.
