Most home owners tend to look at home insurance as an unnecessary expense, which is only accessible to the affluent people in society. But if you consider the devastating effects of extreme weather patterns or accidental fires, which do not discriminate against anybody whether rich or poor, insurance home is not a luxury but a necessary expense to consider. Here are a few tips that should help you to save time and money, as you search for the right insurance home policy:
You Need to Determine the Insurability of Your House
Insurance agents will need to perform an analysis on the condition of your house and its surroundings, in order to quote the best rate for your policy. Some of the questions you can expect from an agent include: the age of your house, the type of roof used, your square footage, the number claims filed within the past five years (if any) and the location of your house. If your house is situated in a rural area, where there are not fire hydrants or fire department, within close proximity, some insurance companies may decline to insure your house. Fortunately, specialty or surplus-line insurance home companies will be willing to insure you, under such circumstances, but it may take longer to obtain a quote.
Consider the Deductibles
The number of deductibles you choose in your policy will determine its overall cost; the higher the number, the lower the cost will be. Insurance companies will offer policy holders discounts, once they hit a certain level in the number of deductibles in their chosen policy. The amount of deductibles can range from $500 up to $10,000. However, you should note that many mortgage companies will put a cap of $1,000 on the level of deductibles they accept on an insurance home policy. Therefore, check with your mortgage company before opting for a higher deductible.
You’re Choice of Policy Options
The basic premise of having home insurance is to insure your house from any accidents. However, there are certain options, which will allow you to extend the “umbrella” of the policy to other potential mishaps which may be beyond your control. For instance, liability coverage will protect home owners from claims arising from bodily injury and property damage to others. So in the event, your 6 year old sets fire to your neighbor’s house, the insurance home policy will pay for the total damage incurred.
Ask For Discounts
You should never feel shy about asking for a discount, especially if you already qualify for it. If your house is equipped with an alarm system, connected to a central station, you may eligible for a 10%. If you are over the age of 50, you may also qualify for a senior/mature insurance home policy holder discount. One of the best ways to reduce insurance costs is through a multi-policy discount. For instance, by combining your car and house insurance, you should qualify for a certain discount on each.
Sources and Citations
Make sure to perform a wide research on the different insurance home policies offered by different companies, to indentify the best rate for your house.