Buying Homeowners Insurance

Many are not thrilled with the idea of having an insurance, specially when there are bills to pay and basic needs to meet. For this reason, the idea of buying homeowners insurance may be frowned at, since there is one percent out of a hundred that an emergency or disaster might occur. Buying a homeowners insurance is your safety net and you can shop around for the right price that will suit your living expenses. Remember that even if you don’t own a home, your landlord will require you to get a homeowners insurance – for your added security. If you are a homeowner, it is only logical that you spend money in buying homeowners insurance that will protect your investment.

Your homeowners insurance policy will protect you in times of peril. The prices will vary from one insurance provider to the other, and it is wise to check the insurance company’s ratings with reputable credit agencies like Standard and Poor’s. There will be exceptions on what will cover your home insurance, and the policy is set into two types of protection: Property and Liability. The Property Protection is normally on the first page of your homeowners insurance policy, which includes data on the type of your dwelling, extra structures in your home like patios or garage, the personal properties inside your home, and the loss of use or living expenses you need to take when you can’t use your home. The Liability Protection will protect you from claims on damages or
accidents that will happen in your home. This will include physical damages to people and the structure of your home.

When your buying homeowners Insurance

When buying homeowners insurance, it is important to learn how you can get the best coverage at the most affordable cost. Here are essential homeowners insurance shopping tips that will stretch the value of your money:

1. Don’t let the price alone dictate your choice. You need to consider how much you will pay and which insurance provider will give you your money’s worth. You may contact the National Association of Insurance Commissioners to help you make that smart choice.

2. You can pay a lower insurance premium if you are near a fire hydrant or the fire department. The newer the electrical, plumbing, and heating systems of your home are, the lesser price you will pay. Make sure these are younger than ten years and are properly working.

3. If you have a $500 deductible on your current home insurance, raise it and double the price. Know the risk of your location and see what extra deductible you can add, specially if your home is in a disaster-prone area. You can save up to twenty-five percent doing this.

4. Exclude the value of the land where your home is built, since it will not be covered in the homeowners insurance policy. This will help you pay lesser premiums.

5. Mix policies by buying a homeowners insurance and an auto insurance from the same insurance company. This will save you up to 15% of the normal premium cost. You can always compare quotes and choose the lower-priced plan.

6. Do your own part in securing your home from disasters, injuries, and theft. You can invest in quality construction materials for your home, dead-bolts, a home security system, fire extinguishers, and smoke detectors. In cases of emergencies, it is good to know that you have added protection before help finally comes.

7. Clean your credit records so you won’t be marked as a high-risk insurance plan holder. Make sure that your records are updated as well.

8. Loyalty can go a long way when it comes to buying homeowners insurance policies. You will be given discounts on your premium if you choose the same provider for many years.

9. Always assess the coverage of your policy and the value of your possessions each year. A brand new TV doesn’t cost the same in five years time. Reduce the amount you’re paying by declaring the depreciated rates of your personal possessions.

There are different types of coverage and not all homeowners insurance policies are created equal. Your homeowners insurance can cover the actual and depreciation cost of your home and belongings, the cost of replacing your home, and medical coverage that will pay for personal accidents that took place in your home. If you’re buying a new home, don’t forget to have a CLUE or Comprehensive Loss Underwriting Exchange reports that will show the history of the home, including damages it has suffered. Depending on your choice, you can have extra coverage that will give you maximum protection against inflation, theft, or credit card fraud. A home is every person’s most basic need – Protect it at all Cost!

RESOURCES:

Insurance Information Institute. “ Ways to Lower Your Homeowners Insurance Costs. “

http://www.pueblo.gsa.gov/cic_text/housing/12ways/12ways.htm

Equifax. “ Homeowners Insurance. “ 2009.

http://www.equifax.com/cs/Satellite/EFX_Content_C1/1163711985578/5-1/5-1_Layout.htm

Tolkoff, Marcy. “ Beginners’ Guide to Homeowners Insurance. “ 2009. Investopedia ULC.

http://www.investopedia.com/articles/pf/08/homeowner-insurance.asp?&viewed=1

Sage, Bobbie. “ Understanding Your Home Owners Insurance Policy. “ 2009. About.com.

http://personalinsure.about.com/cs/homeowners/a/aa013004a.htm