Posts Tagged ‘homeowners insurance premiums’

Your Guide to Understanding your Homeowners Insurance Policy

Friday, June 11th, 2010

Your homeowner’s insurance policy sits in your filing cabinet, safe and sound. You know you have a policy; you know you chose a good, solid policy; and you know that you always pay your premiums.

But do you really know what is in your policy and do you fully understand your rights and obligations under your homeowner’s insurance policy?

If not, then you’re not alone. Most homeowners, in fact, do not take the time to really understand the ins and outs of their homeowner’s insurance policy. And we all know the saying: what we don’t know can hurt us.

With that said, it is probably a good time to pull that policy from your filing cabinet and begin to read it so that you develop a clear understanding of the policy and what is contained in it. Along the way you may have difficulty understanding the policy because of the language used.

We have therefore set up a quick guide so that you can understand your homeowner’s insurance policy so that you can make better decisions regarding your policy:

  • Damage to House - Ever wonder what it means when it says “damage to house?” This part of the policy essentially covers any damage to the house itself. The damages that you can claim on your house are up to the face amount of the policy. In other words, if the face amount of your insurance policy is $200,000, you will receive that much if your home is completely destroyed.

  • Other Structures - Other structures in a homeowner’s insurance policy usually means outbuildings, such as detached garages, sheds and fences, just to name a few.

  • Damage to Personal Property - In addition the structure itself, your homeowner’s insurance policy also covers the contents of your home. Such personal property that may be covered includes: furniture, clothing and personal effects. Highly valuable items, such as jewelry and antiques, may need to be covered under a separate policy.

  • Comprehensive Personal Liability - This type of protection covers you from any accidents incurred by other people while on your property. Your homeowner’s protection for comprehensive personal liability will cover you, regardless where you go.

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Practical Homeowners Insurance Tips to Remember

Tuesday, February 9th, 2010

One of the first things you must do when shopping for a home is to shop around for the best homeowner’s insurance rates. Many individuals, excited about the whole home buying process, tend to neglect the important of a comprehensive, affordable homeowner’s insurance policy. However, a homeowner’s insurance policy can be your saving grace should your home become damaged or completely destroyed.

With that said, there are a number of practical tips that all homeowners should remember when it comes to homeowner’s insurance:

  • Always check the company and research the agent’s qualifications before purchasing homeowner’s insurance. Make sure that you understand your agent’s qualifications, and that you have a good rapport with him or her.

  • If homeowner’s insurance rates are too steep for your budget, consider raising your deductible to lower your rates. Also keep in mind, however, that a larger deductible will equate to more out-of-pocket expenses should you need to file a claim.

  • Remind your homeowner’s insurance agent about items that can lower your premiums, including fire extinguishers, deadbolts, smoke detectors and home security systems.

  • Consider updating your home to better withstand weather conditions (and prevent homeowner’s insurance claims); this may include stronger roofing materials, better windows and a newer electrical panel.

  • Ask your homeowners insurance company if they provide automatic payment systems or web payment systems; these will make the process of paying your homeowners insurance easier, and may allow you to receive rate discounts from your homeowner’s insurance company.

  • Make sure you have adequate coverage, including replacement cost value. Make sure your valuables, such as antiques and jewelry, are also covered (these may require a separate policy).

  • Consider video taping your home for home inventory purposes. Walk from room to room, properly recording all furniture, electronics and personal items and store the videotape in a separate, safe location, such as a safety deposit box.

  • Consider purchasing separate insurance, depending on where you live. For example, you may want to purchase flood insurance if you live in a low-lying area, as standard homeowner’s insurance policies typically don’t cover flood claims.

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Increase your Home’s Security and Save

Thursday, November 26th, 2009

How secure is your home? If you don’t have an answer to this question, then it probably isn’t secure enough!

Many times, your homeowner’s insurance premiums can be lowered if you increase your home’s security. Therefore, it only makes sense to increase your home’s security so that you can protect your family and your belongings and, at the same time, lower your homeowner’s insurance premiums.

From deadbolts to security systems, increasing your home’s security is the smart thing to do. Although the exact amount will differ, the fact of the matter is that most - if not all - homeowner’s insurance companies will offer discounts if you increase your home’s security.

Ideas for Increasing your Home’s Security and Safety:

  • Deadbolts - Easy to install and generally inexpensive to purchase, deadbolts are your home’s first line of defense against intruders. It is best to install deadbolts on all of your home’s exterior doors.

  • Motion-Sensing Outdoor Lighting - Motion-sensing outdoor lighting is incredibly practical and can add another layer of security and safety to your home. Consider installing motion-sensing lighting near dark spots around your home and at each point of entry.

  • Carbon monoxide and smoke detectors - Both carbon monoxide and smoke detectors are inexpensive and easy to mount throughout your home, but both could easily save your life. Consider installing a carbon monoxide detector and smoke detector on each floor of your home.

  • Home Security Systems - Having a home security system installed is one great way to add safety and security to your home. It is also a great way to cut your homeowner’s insurance premiums by as much as 20 percent. An installed security system with monitoring service can save you even more.

As you can see, it is not hard to increase your home’s security and safety. Plus, the savings on your homeowner’s insurance premiums often offset the cost of installing security and safety items! Home security should be one of the first things you think about when moving into a new home, and should be revisited at least every year to determine if you, your family and your home is adequately protected.

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