Homeowners insurance is a must for all homeowners. Usually if you have a mortgage the mortgage company will require that you carry insurance, however if you own the house outright, you have no requirements. Even if you are not forced to have homeowners insurance you should still carry it. But just because you should have insurance doesn't mean that you have to overpay on it. Here are some simple things you can do to lower your homeowner's insurance premiums.
1. Increase Your Home Security
Homeowners insurance doesn't just cover costs accumulated from natural disasters and accidents, it will also help to recover costs from theft and being vandalized. Thus, the insurance company will have to pay out if or when your house is burglarized or vandalized. This means that if you can improve your home security, the insurance company saves money and you save money, too. Most companies will offer you a discount on your monthly premium if you install a home security system, cameras, and alarm or any other measures that will keep your home safer.
Make sure you contact the insurance company as soon as you get the system; they have no way of knowing that you improved security unless you notify them.
2. Don't Confuse Rebuilding Costs With What You Paid For The House
When you built the house you paid for the lot, permits, paid for the foundation being poured as well as the actual house. If something were to happen to your house, even if it burned down, you still wouldn't have to repurchase the lot and pay for the all the permits and initial costs of building. Thus, when you insure the house make sure that you are choosing to insure for the amount that actually reflects the cost of the house, not the entire property.
3. Upgrade The House
Newer houses generally have less flooding, accidental fires and problems than older houses. An older home is more likely to have problems with the water heater causing it to flood, or mold in the home and myriad of other things. If you purchased an older home, try making some improvements to make the house safer. If you remodel or upgrade appliances you should let the insurance company know. In addition, you can call them in advance and ask what improvements will yield the biggest discounts.
By doing these simple things you can improve your homes safety as well as save on your insurance premiums each month. Contact an insurance company, like Mid-Alliance Insurance Associates LLC, for more information.
Home insurance can be complicated. How do you know how much coverage you need? How much of a deductible should you set? Does your home insurance cover all of the potential disasters that can happen? Will you get a big enough payout to replace the items that you would lose during a disaster? My blog is loaded with tips and advice that can help you improve your home insurance policy. It is my hope that my personal experience with loss can help you read, understand and improve your personal home insurance policy and avoid the costly mistakes that I had made.