A Few Ideas on Saving Money on Homeowners Insurance

All homeowners with a mortgage are required to have homeowners insurance but not everyone takes advantage of the money saving techniques below.Home owners insurance

  • Look into getting a discount for having things like: a security alarm system (especially true if it notifies police there has been a break in), smoke detectors, carbon monoxide detectors, fire extinguishers, a pool that has been secured with a fence and lockable gate, rails along the stairways etc.  Don’t be afraid to ask for a discount from your insurance carrier for things that make your home safer.
  • Have multiple policies with 1 insurer.  For instance having both your homeowners and auto insurance with the same insurance company could save you some nice money.  Dealing with one insurer instead of multiple ones could make things more convenient for you as well.
  • Regularly review the cost of your homeowner’s policy.  Request quotes from other insurers and ask how they can be competitive with your current policy.  If your happy with your current insurer but get a good offer from a competitor (that is less than your current policy), ask your current insurer to match the offer.
  • Consider increasing your deductible.  Now you want to be very careful with this especially if your cash flow is tight because you’ll have to put more money out of pocket if a claim does occurs.
  • Make your home more resistant to potential damage.   This is especially useful when your renovating or building an addition.  For instance if your upgrading your plumbing  or getting fire resistant shingles on your roof etc. ask your insurance company what savings are available for your homeowners policy.
  • Realize that your credit history may affect your policy cost.  Not all insurers look at your credit but the trend is that more insurance companies are.  Potentially saving money on insurance is just another reason to pay bills by their due date, check your credit report for mistakes and be conservative on credit used.

I hope you found this useful as I’m always looking to provide useful insurance information and tips here.

Homeowners Insurance Protection in the Case of Disasters

Virtually everyone that owns a residence has a homeowners policy but does that policy properly protect one in the case of a natural disaster? Below are a few important considerations to examine closely.Home Insurance

  • Is one in a flood plain or likely to be suject to flooding in their home due to an overflowing water bed or other adverse natural condition/event that could cause damage?  The National Flood Insurance Program issues coverage for this situation and it can be a life saver in a devastating event like hurricane Katrina or the recent Irene.
  • Windstorm protection can be pertinent especially in the case where a tornado or hurricane can be destructive.  Look at the policy closely to see if properly protected and if not consider the appropriate rider.
  • A standard homeowners insurance policy may not guard against a mudslide.  Certain areas of the country are more subject to this type of danger as well as homes on sloping ground or that are on weak soil.  Look into this risk with your insurer, agent and or state insurance department.  Research to see if useful stats are available in this regards.
  • Earthquakes can be devastating and can cause extraordinary damage.  A rider covering this types of event is worth consideration especially for those in areas with active fault lines.  One does not want to find out later after one of these that their policy didn’t protect against an earthquake.

There could be other disasters risks out there not mentioned here.  Talk with an insurance company or broker and state insurance department for more information.

Homeowners Insurance Tip: Make an Inventory List of your Possessions

Its important to inventory the possessions in your home because if there ever is a fire or a burglary settling a claim with the insurance company will be much easier.  Below is list of considerations and recommendations for making a list for your homeowners insurance policy:Home Insurance Tip

  • Take photographs of your possessions (or even capture them on video)  to go along with the written list.  This is a good way to back up your written claim.
  • Provide the inventory checklist to your homeowners insurance company or insurance broker and be sure that they recognize it.
  • Asses the value of what each item is and keep any purchase receipts along with the assessments.  Bear in mind that some things will increase in value and some will depreciate over time.
  • When making this list consider whether or not you have the appropriate coverage for very valuable possessions like jewelery.  Homeowners policies have limits to how much they will pay out and it may be wise to get additional coverage on items that have large values.
  • If your valuables have serial numbers put those details on your inventory list.
  • Keep your inventory list in a safety deposit box (so if something happens to the house the list is kept safe) and make a backup copy.

Liability Insurance Coverage for Homeowners & 4 Things you Should Know

Liability insurance is the component of a homeowners policy (also know as premises liability insurance) that protects you the homeowner  from liability when another is injured on your property.  This coverage should protect your household members (in which you’re liable) if property damage occurs to an others property.   To illustrate an example in which coverage may protect you:  Your friend comes over, slips and falls on a toy left on your porch by your child.   Below are 3 things you should know about homeowners liability coverage.Home Liability Insurance

  • Believe it or not if a trespasser enters your property and is injured you could be on the hook or in other words liable.   Almost hard to believe, almost sad but true.  This should be reason enough to consider having the liability component of homeowners insurance or increasing the coverage‘s limit.
  • Your homeowners policy may or may not provide you with free liability coverage.  Find out how much you’re covered for.  Bear in mind this may not be enough.  Commonly you’re able to protect your self for $300k, $500k or even $1 million.
  • Its important to note that you usually will not be covered if you intentionally cause an injury.  Definitely review with the insurance company what is covered.  Ask them to get specific regarding how your covered in the event of an accident on your property;  then ask them how negligence comes into play.  Its wise to find out all the nuances so you’ll know if you’re properly covered.
  • If you have or are looking to buy liability coverage find out if you are covered for paying the injured party’s medical bills.