When it comes to insurance companies, it appears like they all want you to spend a lot of money. Between car payments, mortgage payments and other bills, you may go broke. You can learn how to reduce insurance costs and still maintain adequate coverage by reading these tips.
Homeowner’s insurance shouldn’t be considered optional. You need to be protected in case of floods, storms, burglaries or fires. If you are currently paying for a mortgage, it could be that the loan terms state you must get homeowner’s insurance whether you like it or not.
No mortgage? Lower insurance rates! Paying off a mortgage takes time, but you should make this a priority. This is because insurance companies expect you to take better care of your home and its maintenance if you are free and clear of your mortgage.
Always have an inventory of valuable contents in case you need to make a claim. It’s hard to remember what was in a home during a catastrophic event. One handy hint is to record everything on camera, either through still pictures or video recording each room.
When you buy a house, remember flood insurance. Flooding is not typically covered by homeowner’s insurance, and due to recent events, it is clear that floods can happen in areas you don’t expect. Losing your house to a flood is very upsetting, so be sure your policy can cover the damages if it happens.
There are some things that can be done to mitigate premium costs. For example, framing an addition using either steel or concrete will decrease your insurance premiums; while framing using wood may increase them.
You can never have too many smoke alarms within your house. Insurance companies offer better premiums for safer homes. When you add carbon monoxide/smoke detectors to your home, your insurance company will recognize your home as being safer and a better risk for them.
You need security available in your home when purchasing homeowner’s insurance. If you do this, you can reduce your cost every year by at least 5 percent. Be sure a central or police station is part of your security system so burglaries are able to be properly documented.
Maintain documentation of your belongings by taking notes, photographs and videos. This can help make the process go smoother when filing a claim. If you have an inventory of your belongings, the claim process will be quicker and more efficient. Make sure the inventory is kept safe in a safety deposit box or a fire proof safe.
You can save on homeowner’s insurance premiums by paying your mortgage in full. It’s not easy a lot of the time, but if you are able to manage it, you save money later. Insurance companies will believe you are going to care better for your home if you own it fully.
With a smart approach to shopping for insurance, you can find an economical policy that doesn’t force you to sacrifice on coverage. There’s no time to lose! Use what you’ve learned here to get the coverage you need at a price you’ll be happy to pay.