Homeowners Insurance

Homeowners Insurance is one of those must haves when you own a home. In fact, it is a required when you have a mortgage, but like all types of insurances, it has been steadily on the rise. If you live in a high risk area as I do, it has more than doubled in the past few years. By working closely with my insurance agent, I found that there are ways to save money on my policy. Here is some important information that you should know about your homeowners insurance policy that just might save you some money.

• Make sure to shop around . Since different agents write policies with different companies, you will find that the rates will vary. After receiving a quote, you must look over the policy being offered. Many times there are unnecessary additional items which you can remove to save some money.

• Sit with your insurance agent and go over every line item on the insurance policy quote. They will be able to explain each item for you so you can determine if it is necessary.

• By raising the deductible, you will decrease the cost of the insurance policy. Be sure not to raise it too much and make certain that you are comfortable with the proposed deductible. Whatever your deductible is, you should have this amount available in savings to cover that costs should something happen.

• Do not insure the land that your house sits on. If you deduct the value of the land from the total value of the home, you will have the amount of coverage you should carry.

• Do not add in the value of a shed to the value of the home. Outdoor personal property is covered under the line item “unattached structures“.

• Do not add in the value of a pool. But you should carry a high personal liability such as $300,000 if you have a pool in case of accidents.

• Try to get a policy with the same company as your auto insurance. This will give you a multiple policy discount.

• You will receive a discount for items such as security systems and hurricane shutters (if you live in a hurricane prone area). Make sure to tell your agent about this.

• Make sure to tell your agent of any major repairs you have made such new electrical wiring, heating system, air conditioning system, roof and plumbing. You will also receive a discount for these items.

• If you are over 55, ask if you can receive a senior citizen discount.

• If your home is located in a flood zone, it is important to carry flood insurance.

• After you have called several insurance agents for quotes, compare each of the policies. Do not stop and accept the first quote you receive. You will be surprised to see the different quotes you receive from different companies.

• If you home is paid in full, do not let your policy lapse. Depending on where you live, it can be very difficult to find a company that will issue you a policy.

Homeowners insurance is a necessity and something that you need to take control of. While at the same time you want to save some money, you also must be comfortable with the policy that you agreed on. Next time you are renewing your policy, don’t forget to take a look at this list of how to save money on your homeowners insurance bill.

If you know of any other ways to save on homeowners insurance, please share them with us. Today everyone is concerned about saving some money.