Homeowner insurance can be a valuable asset and almost always required if the money for that home was lent to you. Homeowner insurance has many variables that have to be taken into account, such as, the year the house was built, existing damages, crime rate of the neighborhood, past claims, age age of the electrical and plumbing. This article will take a look at 10 tips for purchasing homeowner insurance which should help the average consumer.
1. Individualized Coverage
All houses are located in different areas; therefore there is no clear cut quote any insurance company can give you for your property without knowing the details. Though mortgage companies will require minimum liability coverage, it would be wise to get 200% liability coverage to prepare for the worst. My house took damage last winter do to an ice storm, for instance if that was not covered in my homeowner insurance that would have cost nearly $5000 out of pocket! Get coverage for your specific area and natural disasters that occur, it could save you hundreds of thousands!
2. Older House?
The older your house the more expensive home owners insurance will be. Unfortunately for older house owners the expected problems are far greater than in a newly built house.
3. Buy New in a Safe Neighborhood
The lower risk you are to the insurance company the lower your premium will be. A new house will carry a lower premium compared to an older house of the same price. A safe neighborhood with a very low crime rate will also get your premium reduced.
4. Get a Security System!
Believe it or not getting a home security system could save you hundreds over the lifetime of the device. The security system will also keep you safer, which makes this a good overall investment.
5. Older Homeowner?
Homeowners over the age of 50, which is a standard benchmark for many insurance companies however the actual age can change, will offer you a discount for your policy.
The higher your deductible is the lower the cost of the premium on your homeowner insurance will be. Be careful with a lower deductible because an unexpected event could cost you thousands.
7. Smoke Alarm
Though this one may seem obvious having at least one working smoke alarm on each floor could save you on your premium. This is a good idea anyway to prevent injury or death during a fire.
8. Do You Also Own a Vehicle?
To save a considerable amount on your homeowner insurance policy you can combine your auto policy with home insurance. Some insurance companies offer this plan, some do not.
9. Shop Around
Think all policies are the same? Just like auto insurance, homeowner insurance is variable and coverage policies as well as price will change from company to company.
10. Have Old Electrical and Plumbing
Okay so you have old electrical, plumbing, and other structures. No problem, when you get around to fixing them the insurance company will adjust their policy options for you!