"Your Home Owners Insurance Can Cost Less if You Know What to Ask"

Save Money on Your Home Owners Insurance

Get the Cheapest Insurance by Knowing What to Ask the Insurance Agencies

Skillfully buying home owners insurance is difficult to do. Your goal should be to get the cheapest insurance, but you also need the best homeowner insurance coverage for your situation.

The typical written policy is hard to read, difficult to interpret, and complicated.

The evidence of the Katrina Hurricane homeowner insurance problems should warn us…

A lot of money is riding on being properly insured and knowing the risks that you as a homeowner are taking.

Seeking the cheapest insurance is important, but down on the list of betting $100,000, $200,000…. $500,000 to rebuild your home.

While you want the cheapest home owners insurance, you do not want to save $100, and not be insured for a $100,000 loss. That would be a poor value.

Remember to consider coverage first, then cost.

Be sure to shop around for your homeowner insurance. Homeowner insurance can be costly, but necessary.

Insurance agencies have widely varying premiums, so take the time and effort to shop around to get the best value for your insurance dollar. While you want the cheapest insurance, the best value is the most important factor

You can save several hundred dollars a year on home owners insurance and up to $50 a year on renter insurance by purchasing insurance from licensed insurance agencies with an agent and an office in your area.

This is why the number one concern should be that of finding the best home owners insurance agent.

Only a good agent or lawyer knows what is covered in the policy and can recommend the best coverage on for your home in your town.

Check your Yellow Pages. Better yet, get on the Internet.

It is probably better to insure with the big-name, solid insurance agencies.

Then, from that list, call three or four of the lowest priced home owners insurers to learn what they would charge you.

Finally, go their offices, meet with the agent, and discuss your needs and your situation.

Get his card. There is nothing like having a real person available to help when the trouble strikes.

Here are some considerations to discuss about your home owners insurance:

• While talking to your insurance agent, ask him about saving money on home owners insurance by upping the deductible.

  Higher deductibles mean you are responsible for more on a claim, but this is a good way to have excellent coverage, and also some of the cheapest insurance. Just make sure when choosing home owners insurance that you are comfortable paying the deductible if you make a claim.
  
  

• Make certain you purchase enough coverage to replace the house and its contents. "Replacement" on the house means rebuilding to its current condition.
  
  

• Analyze your home owners insurance to see if there's any coverage you have that you can do without.
  
  

• Condo owners need to know what the condo association covers so as not to double insure.
  
  

• Flooding is the most common type of natural disaster, whether or not you're close to any lake, river or ocean. Consider flood insurance, even if you're not required to buy it.
  
  

• Buy earthquake insurance from insurance carriers that write only earthquake insurance. They usually have lower rates than carriers that offer a variety of policies.
  
  

• In hurricane, and tornado and flood areas, make sure that you are covered for all three contingencies. After Hurricane Katrina, many were surprised to find their home owners insurance did not cover them because they did not pay for insurance to cover their situation.
  
  

• Show the insurance agencies that you are taking action to reduce the risk of mold-related damage.
  
  

• Ask about discounts. Check with your insurance agency to seeif they offer premium discounts for the use of fire extinguishers, smoke alarms, dead-bolt locks, sprinkler systems and security systems.

  Replacing your roof may lead to a discount on your home owner insurance.

  In some states, the insurers have to give discounts if you have installed hurricane/storm shutters and/or hurricane-resistant laminated glass doors and windows.
  
  

• Other discounts to give you the cheapest insurance might include lower prices for insuring your home and car with the same company. This is called a multi-policydiscount.

  Make certain your new homeowner insurance policy is in effect before dropping your old one.
  
  

Other Things You Should Know About Your Home Owner Insurance

When you purchase home owner insurance, you will receive a policy.

Understand that your home owners insurance policy is a legal contract. Your rights and responsibilities as well as those of the insurance company are clearly stated.

Read that policy and make certain you understand everything. Keep your policy in a safe place and know how to contact the insurance agency.

Every Year, Review Your Home Owner Insurance Needs

Check with your insurance agent at least once a year to make sure your homeowner insurance still provides adequate coverage for your situation. Things that can add value to your home such as an addition, new insulation or remodeling may increase your replacement cost.

Know What Factors Affect the Cost of Your Home Owner Insurance

The home owner insurance savings over the years you live in a home can make a vast difference in you expenses. This is especially true as some of the factors are not that obvious and the insurance costs can vary quite a bit within a region.

Depending on where you live, the cost of your home owners insurance can vary greatly.

Crime rates vary from community to community, as well as the proximity of the local fire and police departments, and the water supply. These factors help determine the protection class and therefore cost.

In addition to the value of your home, the following factors determine the rates you pay for home owners insurance:

• Fire Protection: The distance from your house to the closest a fire hydrant makes a difference. Also, and the quality of your local fire department determine your fire protection class.
  
  

• The Age of Your House: New homes may qualify for discounts. Older homes may not qualify for preferred programs. Insurers may require older homes to have updated heating, plumbing, wiring and roofing.

  Watch Out! Those upgrades can be very expensive and you may be obligated to purchase the home before you learn you insurance company wants you to make changes.

  This has happened to me. I was making a 2000 mile move and found out two weeks before the closing that I had 30 days to re-do the electrical system in the home or my insurance company wouldn’t issue a policy. It was too late to find another company and I had to relocate then. This cost us thousands of dollars unexpectedly at the last minute during a hectic period (while moving).
  
  

• Type of Construction: Frame houses usually cost more to insure than brick. That’s because frame homes burn much more easily than masonry ones.
  
  

• Amount of Coverage: The amount of coverage you buy for your house, contents and personal liability will affect the price you pay.
  
  

• Deductible Amount: If you choose a higher deductible, it will reduce the price for homeowners insurance.
  
  

• Discounts: Insurers offer lower prices for such things as insuring your home and car with the same company. Also, installing dead-bolt locks or alarm systems can get you lower home owners insurance rates.

If you believe you have been treated unfairly while shopping for insurance or in getting a claim paid, please contact your State Insurance Department.

You can link to your State’s website by clicking here.

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