Distinguishing The Features On Homeowner Insurance Policies



The home you purchased was a very large investment. It is best if you’re always protecting this investment with a great homeowner’s insurance policy. There are many places to find insurance and many types of coverage, so pay attention to these tips so that you can figure out what you need and for what price.

There are two ways to save money on homeowners insurance. Install a home security system. This can reduce your premiums by five percent. You must prove that you have security systems installed. Second, install smoke alarms throughout your home. This can save you another ten percent!

If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.

Always get the “guaranteed replacement value” stipulation in your policy. This gives you the cost of a full rebuild of your home, regardless of what destroyed it. One of the best benefits of this is that even if inflation occurs in the construction market, the insurance company will be the one to bear the extra costs.

Pay your home insurance yearly instead of monthly. Breaking it in to monthly payments may make it seem to be cheaper but if you save the money to pay it in full for the year, you will get a discount for making that payment. This can save you a good bit of money over the years.

Check out Consumer Reports before you open a home owner;s policy with any company. Consumer Reports has a great website that makes it quite easy for a consumer to find the information that they seek. The scores that are given, will help you decide if that particular company is one that you want to work with.

If you want to have a lower premium, try to keep your policies with one company. Many companies will allow you to bundle your polices for a reduced premium. As an example, protecting the home and the car under the same company will mean huge savings on both expenses.

When trying to save money on your homeowner’s insurance, you should check out companies that offer multiple-policy discounts, which could be 10 percent or more if you have more than one type of policy with the same company. Examples would be if you had auto or health with a company, and then purchased homeowner’s with the same company.

Install a sophisticated alarm system in your home, preferably one that is monitored by a reputable security company, or is linked directly to the local police station. Insurance companies reduce your yearly premium by up to 5% if you can prove by an invoice or contract that you have a centrally monitored security system installed.

Do not be confused with the various types of coverage out there. Just remember that you need solid protection for your home and what’s inside of it. If you follow the tips in the article above, you will be able to find a solid policy that provides ample coverage for your home without breaking the bank.

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