Homeowners insurance can be described as a package policy meant for homeowners that cover both damage to their property and the liability or legal responsibility for any injuries and property damage the owner of the house or any members of the family cause to other people, which includes damages caused by household pets. Any standard homeowners insurance policy should include this 4 Essential Coverage
Owner Personal Belongings: These includes your furniture, clothes, sports equipment and other personal items that are covered if they are stolen or destroyed by fire, hurricane or another insured disaster.
Structure of the House: This is the part of your policy that pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, lightning or other disaster listed in your policy
Liability to Protect: Liability to cover you against lawsuits for bodily injury or property damage that you or your family members cause to other people.
Additional Living Costs: Coverage for more living costs differs from company to company
How to Lower Your Homeowners Insurance Cost
With all the amount of money you spend on your home, it’s not surprising if you consider it as your biggest investment. From buying to maintaining your property, you’re bound to hand out money from time to time. To protect your investments and for added peace of mind, signing up for a homeowners insurance can be the right way to go. However, having a homeowners insurance is not as simple as you think it is. Without careful planning, you can end up compromising your assets.
Here are 5 simple things you have to consider to get the Best Cheapest Homeowners Insurance
Shop Around: Your mortgage provider may have a good homeowners insurance offer for you, but that doesn’t mean you have to agree with him right away. There are actually cheaper deals from other companies if you just look around. Although the price is your primary concern, you have to keep in mind to compare the levels and types of coverage home insurances have when shopping around. There are comparison sites that you can use to decide which offer will work best for you.
Increase your home’s safety: Insurance companies tend to offer discounts to homes that have security systems because they lower the chances of filing a claim. You can get as much as, or even higher than, 5%. In choosing the right security system for home, make sure it can address all your safety needs. It should have reliable devices, quality features and a fast response time if you’re having it professionally monitored. You can also consider adding a surveillance system for extra protection. Some of the best security cameras are DIY and can be conveniently added to your existing system.
Get just what you Need: Although it might be tempting to get as many homeowners insurance coverage as you can, it isn’t generally a good idea, particularly if you’re aiming to cut the home insurance cost. Instead of saying yes to all offers, it can help if you can sit down and figure out exactly what you need. Your home insurance should just be enough to cover your home’s structure as well as your personal valuables. It should also be able to ensure your liability to other people and any other living expenses if damage does occur and you need to transfer to another place during repair.
Pay your Homeowners Insurance on an Annual Term: If you think deciding to pay your insurance is as simple as dividing the yearly cost by 12 parts, then you may have to reconsider the idea. On top of the monthly dues, insurance companies tend to add a certain amount of interest. You may also have to pay a deposit upfront before the monthly fees. Choosing to pay your insurance can sound convenient because you won’t have to hand out a big amount of cash at once. However, if you add up the monthly fees and the interests, you’re likely to save more if you pay for an annual term.
Increase your Deductibles: Raising your deductibles can mean that you’re less likely to file a claim for small amounts. Because of this, there’s a good chance your insurance company will lower your home insurance cost. This approach, however, entails some risks. If, such as, you raise your deductible to $1,000, you need to have that amount ready for when damages to your property do happen.
Without that emergency fund, there’s a good chance you’ll be faced with tons of problems. Before you reach out to your insurance company to hike up your deductibles, make sure to get access to your situation and assets first. Your emergency fund should be enough to cover a few months’ worths of living expenses to cover you and your dependents.
The cash should also be readily available and accessible. homeowners insurance is one of the essential things you need to have if you want to protect and secure your home, family and investment. However, as urgent as having a home insurance sounds, you need to be extra cautious of your options and decisions. Without proper planning, you can end up paying more for your home insurance than you really have to.