Purchasing homeowners insurance is important to protect your home and your personal finances. This makes homeowners insurance tips valuable if you are shopping for this type of insurance. There are many tips that can aid you in getting the right homeowners insurance while also helping to save you money. Here are five homeowners insurance tips to help you with the shopping process and to save you money in the long run.
1. Homeowners Insurance Tips: Don’t Forget the Items Stored in Your Home
A homeowners insurance policy can cover, in addition to the home itself, the personal items that are stored in your home. This includes virtually anything you would like to put onto the policy. Standard items such as furniture and appliances are a must, but you should also think about including other personal items. If you add up all the items stored in your home, their value would be considerable. Think about having to replace them all if they were destroyed in a fire or other disaster.
2. Homeowners Insurance Tips: Shop for Insurance Before Buying Home
One of the most valuable of homeowners insurance tips is to shop for homeowners insurance before you close on your home. This allows you to get an idea of how much it will cost to insure the home. The faults that come with the home will be evaluated by the insurance company and can make a big decision in whether or not you buy the home. If you wait until after the purchase, then you may be stuck with a hard to insure or expensive to insure home which can leave you in a financial bind. Keep in mind that homeowners insurance is an important element in the home buying process.
3. Homeowners Insurance Tips: Consider Replacement Cost
When you insure the structure of your home, you will do so for an amount based upon the market value or purchase price of your home. If you have just purchased the home, you must consider how much it will cost to rebuild your home in the future. Inflation, housing market fluctuations and an increase in construction costs can greatly increase the replacement value of your home. While these costs are hard to foresee, you can get replacement cost coverage to guard against rising costs and value. This will be expressed in a percentage. For example, 125 percent replacement cost means your policy will cover up to 125 percent of the insured value to rebuild your home. Most consumers get replacement cost coverage of at least 125 percent and up to 200 percent.
4. Homeowners Insurance Tips: Think About Your Deductible
The deductible on your homeowners insurance policy is important both to the premiums you pay and how much out-of-pocket expense you expect to deal with. To determine the deductible that is right for you, you must think about how much you can afford to pay out-of-pocket if a claim is made. Deductibles generally range from zero to $2,000. Most homeowners find a deductible in the range of $500 to $1,000 serves the purpose of reducing out-of-pocket expense while also keeping premiums affordable. When getting your rate quotes, especially if you get them online, change around the deductible amounts to see how they affect the premiums.
5. Homeowners Insurance Tips: Take Advantage of Online Rate Quotes
A list of homeowners insurance tips would not be complete without a tip on how to save money. The most convenient as well as the most time effective way to shop for and find the best homeowners insurance is to gather online rate quotes. In less than 30 minutes you can have at your disposal three to five rate quotes. From these quotes you can compare the prices of the top homeowners insurance companies in your area. This will give you a clear indication as to which company can save you the most money. By looking for homeowners insurance online you can save a considerable amount of money and time while also getting the best deal for yourself.