Whether you own a home or are renting one, it is important and in many states mandatory to have insurance on your property, both structure and possessions. The trick is to find the best home owner's insurance at the most reasonable rate. There are ways to save literally hundreds of dollars if you are willing to shop around and ask lots of questions.
For example, if you are willing to talk to an agent about a deductible that is higher than most, your premium will be surprisingly lower. By raising your deductible your monthly or onetime payment will be lowered in many cases by hundreds of dollars depending on how you wish to pay.
If your home has dead-bolt locks, alarms for burglaries, shutters on windows for storm protection, roofing that is fire safe and smoke detectors, discuss these benefits with your agent, and you will probably find that they too will bring you a substantial discount.
Age plays a role in home owner insurance premiums as well. If you are 55 or over and have good credit, you will probably qualify for special discounts and lower rates. It also helps to choose a company that you might have other insurance coverage with; for instance, automobile insurance.
Purchasing enough insurance is very important. If, for example, your home is destroyed, you'll want to have enough coverage to rebuild and replace the valuables inside. Discuss what you need in detail with your agent to make sure you have the right amount of insurance for your needs.
Do not let an agent talk you into insuring the land your property sits on. This is unnecessary and will only add more to the premium and to the monthly payments or payment arrangements you've made with the company.
Also, keep in mind that Actual Cash Value policies may be less expensive, but should a disaster occur, you will only recover money on what the property was worth when the disaster occurred with age and wear on the property held as a depreciation factor.
if you run a business out of your home and have special equipment like cameras, computers, instruments, jewelry, etc., make sure that you discuss extra coverage for these items with your insurance agent. This might mean that you will need to add a clause for special coverage to your policy.
If you live in an area that is prone to flooding or earthquakes, you must also ask about coverage for these events. In many instances, if you live in an area that is prone to flooding and earthquakes, your policy will not cover damages occurring because of them. See if the company will add a separate earthquake policy or check out the National Flood Insurance Program if your plan does not cover certain "natural disasters".
Many renters think that because they are renting, the owner of the home has insurance and, therefore, they are protected. This is not necessarily true, and it is very important for a renter to contact an insurance agent to find out what additional rental protection must be necessary.
To find the lowest rates for home insurance visit the
home insurance rates page on our site.
