If you’re about to turn 55, this is a great time to shop for a new homeowner’s policy, or at least ask your current insurance carrier for a policy review. Senior citizens (55 and over) are often eligible for good insurance discounts. Shop around if your company is not providing you with this discount.
You can reduce the premiums you pay on your homeowner’s insurance by setting up a security or alarm system. The cost of installing a security system is low, and your home will be protected while you at home or away. Installing alarm systems and tracking devices can greatly lower your premiums. The more protected and secure your property is, the less likely your insurer will have to pay out as much money. After you put in something like this, let the company know so that your policy rate can be adjusted accordingly.
Work to pay off your mortgage to save on insurance premiums. This can save you a lot of money on your insurance premium. This is because insurers believe those who own a home outright are likely to take great care of their investment, making for lower risk.
If possible, pay off your mortgage to save money on your home owner’s insurance. Owning a home outright instead of carrying a mortgage gives insurers confidence in the homeowner’s level of responsibility. Therefore, you may get great deals on your premiums. As soon as the mortgage is completely paid off, call your insurer to have the savings start.
You want to live in a home like the one you lost, so you need to get guaranteed replacement value coverage. It will allow you to rebuild a similar home in the event that your home is destroyed and must be rebuilt. Anyone who lives in earthquake zones should consider getting earthquake coverage. You will have to pay for damages from an earthquake if you aren’t covered.
Although home owner’s insurance can be expensive, it is a necessary investment. There are some ways to reduce your expenses. You can lower the premium by choosing to raise the deductible. Updates, such as new roof or security system, will also lower your rate. Talk to your insurance company about their improvement and update list to save money on your insurance policy.
Consider insurance pricing when you think about doing a home remodel. For example, you might install a new bathtub and bathroom sink, the value of which should be included in your coverage. The cost and quality of materials will determine the exact amount to be increased. Wood will add to your policy costs more than steel and cement, since it is vulnerable to fire and weather. When you are adding on to your home, be aware of how the design elements can affect your insurance rates. Using more durable construction materials can lower your premiums on a new addition. These material are less prone to damage and can lower premiums.
Insurance premiums rise in line with the value of the coverage. However, that doesn’t mean that you can’t drive those prices down tremendously by using the tips we covered in the article above. Just go over the tips again, and you’ll be saving money in no time.
]]>When deciding how much insurance you need to cover your home, think replacement cost rather than market value.
Most people tend to think about the market value, which is the selling price of your home. This value goes up or down based on the economy, the supply and demand for homes in your neighborhood, local employment levels and other factors. Replacement cost, on the other hand, is the amount it would take to rebuild your home at today’s prices. If your home suffered devastating damage you want enough insurance to pay the cost to rebuild. Make sure your home and personal property are adequately covered. It is important to have your insurance agent help you estimate how much coverage you’d need to actually replace your home and cover your personal property.
The amount of your mortgage balance is totally irrelevant to the amount of homeowner guaranteed replacement cost insurance you should carry. In many states, over insuring for more than replacement cost is illegal-because over insurance encourages arson. Be sure your guaranteed replacement cost policy includes a building code endorsement. That means the rebuilt home will be constructed to today’s building codes, not the codes in force when your home was originally built.
- Start with a guaranteed replacement cost insurance policy.
- Raise your deductible to $500 or $1,000 for each loss.
- Compare policy costs with several insurance agents.
- Consider whether you need depreciated or full replacement cost personal property insurance.
- Review your liability coverage to see if an umbrella policy will give you better protection at lower cost.
Insurance Can Be Hard to Get
Obtaining homeowners insurance in Florida has in some cases become an inconvenience mainly due to past hurricanes and/or flooding in the area and because state law forces the company to offer flood insurance. A few areas the consumer may find it hard to get coverage include: sales in beachfront/island areas or near flood zones and older homes.
Take Inventory Now
Imagine coming home some night and finding your home burglarized, vandalized or burned. Would you remember all the items missing or destroyed, and their value?
Keep Accurate Records of Your Household Possessions! Here’s a Checklist:
- Make a list of items in each room as you move in.
- Write down serial numbers if they have them.
- Take photos or video’s of items in each room.
- Put the owner’s manuals of items you purchase along with their receipts together.
- Keep in a safe storage spot.
Burglary Prevention Tips:
- Put up a “Beware of Dog” sign.
- Give your home a lived-in look.
- Keep garage doors closed and locked.
- Leave a radio on. It signals that someone is home.
- Trim shrubs around doors and windows so that anyone can be seen more easily.
- Set inexpensive timers to turn on lights in different rooms at different times.
- Get a home security camera system.
- Leave shades and drapes open. If closed, it’s a sign you’re gone.
- Place lamps close to windows to obscure a view inside.
- Get some old clothes and a Halloween mask and make your own “resident security guard” but stuffing it all.
- Install outside lighting that is activated by motion.
- Join or start a neighborhood watch program.
- Get a cheap MP3 player, hook up to speakers, get an aggressive dog barking MP3 and put it to play in a loop 24/7.