Seven tips to selecting and managing your Homeowners Insurance.
Gather information about your home. Get as much information as you can about the age of the plumbing, electrical, and other systems of your home. Construction materials used to build your home can change your rate. If you have a masonry home, it could be much more expensive to insure against earthquake damage, but much less to insure against fire because masonry is less flammable. This will definitely help when securing homeowners insurance quotes.
How much do you need? Studies suggest that 60 percent of homeowners in the United States are underinsured. Don’t insure just the market value. Insure the “replacement value.” The market value is what someone will pay for your home. The “replacement value” is how much it would cost to rebuild your home if lost by tornado, flood, fire, or something else.
Don’t let special things float away. A standard homeowners policy will cover the structure of your house and general possessions. However, it may not cover certain high-end things like coin collections and engagement rings. You can get a “personal articles floater” for as little as $30 dollars a year. “Floaters” have no deductible, and can cover such things as theft or loss away from home.
Safety can pay dividends. Make sure to consult with your insurance agent when making your home safer. It could save you money! Monitored security alarms, deadbolt locks, and fire extinguishers are among the things that could get you a discount while keeping you safe.
Keep a record of everything. If you have to file a major claim, accurate records that are up to date can be valuable and helpful. When you make any major renovations, let your insurance agent know, as this will affect the replacement cost of the home. Also, keep an inventory or all of your possessions. Take pictures or use a video camera to record all of your things. A record of what you paid for each item and the current value should also be kept. Store these records away from your home in case of disaster.
Make sure you pick someone you can trust. Before you pick from among your homeowners insurance quotes, check out the provider. Review customer compliments, complaints, and satisfaction ratings from unbiased sources such as J. D. Powers, your state department of insurance website or A.M. Best Company.
Location, location, location! Where you live can dramatically change your premiums by quite a bit. Is your area prone to fires, hurricanes, earthquakes, or flooding? Are you in a high crime area? Is your home close to emergency services? Experts in the industry have highly suggested that you obtain a minimum of three quotes before making a purchase.
