Posts Tagged ‘homeowner’s insurance rates’

When to Contact your Homeowners Insurance Company

Tuesday, February 9th, 2010

We all want to make sure that we have the best, most comprehensive homeowners insurance so that we can be sure our home, our valuables and our families are adequately protected in case of a home-related disaster or injury.

But many of us simply don’t take the time to consider the many things that can affect our homeowner’s insurance rates. In particular, the homeowner’s policy that you originally took out years ago may not work well for you today.

So, the question is: are you adequately protected? The only way to make sure that your homeowners insurance is still adequate is to contact your homeowner’s insurance agent on a regular basis; at least every two to three years. In addition, it will probably benefit you to contact your homeowner’s insurance agent when:

  • You perform extensive renovations, improvements or upgrades - Any remodeling or renovation projects that add to the value of your home should probably be reported to your homeowner’s insurance company. In addition, take pictures, keep receipts and even video record your new improvements so that you have proof should you need to file a claim. Some of the reasons you may contact your homeowners insurance company include: deck, finished basement, addition or large remodel, such as a bathroom or kitchen.

  • You purchase expensive artwork, jewelry or antiques - The addition of expensive personal effects to your home will probably require an additional policy rider. Since most homeowners insurance policies do not cover such expensive things as jewelry and antiques, your homeowner’s insurance agent will probably recommend an extra policy to cover these items.

  • You install a swimming pool, hot tub or trampoline - Any type of outdoor recreational item that may create additional dangers should be reported to your homeowner’s insurance company. In the case of trampolines, some homeowners insurance companies do not even allow them because they pose too big of a liability issue. Don’t get caught with inadequate homeowners insurance should a guest become injured in your swimming pool or on your trampoline! Be prepared and always provide this information to your homeowner’s insurance agent.

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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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Factors that may Determine your Homeowners Insurance Rates

Wednesday, January 6th, 2010

Homeowners insurance rates are affected by multiple factors, many of which we may not be aware of. It isn’t uncommon, for example, to have very different homeowner’s insurance costs for two very similar homes.

The following factors that may influence the rates of your homeowner’s insurance policy:

  • Age of the home - Older homes typically have higher homeowners insurance rates than newer homes, mainly due to the age of the home’s structure and its features, such as the plumbing, the electrical and the roof, for example. An insurer will usually raise the rates for an older home because it is simply assumed that more problems exist with an older home.

  • Location of the home - Your home’s address will likely affect your homeowner’s insurance rates. From crime to location near public facilities and fire stations, the equation for determining the cost of your zip code varies greatly from one insurance company to the next.

  • Building materials - The materials used to construct your home may change your homeowner’s insurance rates. For example, wood shingles may be more costly to insure than vinyl siding because they catch fire more easily. When constructing or remodeling your home, check with your insurance agent to see which building materials may lower the rates on your homeowner’s insurance policy.

  • Home amenities - Some home amenities may lower the cost of your homeowners insurance policy (i.e. security system), while others may raise your rates (i.e. swimming pool, hot tub). Again, it is best to check with your insurance agent regarding amenities and how they affect your homeowner’s insurance rates.

  • Animals - Some dog breeds are considered higher risk because they have been associated with aggressive behavior and dog bites. Some of the most common dog breeds to earn this distinction include: Pitt Bulls, Dobermans and Rottweilers.

  • Personal possessions - If your home includes antiques and other valuable items, you may be paying more in homeowners insurance. Some of these valuable items may even need to be insured separately, thus raising your rates.

  • Liability coverage - Higher liability coverage equals higher premiums. Check with your insurance agent and ask about average liability coverage.

  • Deductible -Choose a low deductible and you’ll pay more in homeowners insurance; choose higher deductibles and pay lower rates.

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How to Lower the Cost of Homeownership through Lower Homeowners Insurance Rates

Monday, December 28th, 2009

New homeowners often fail to take into account the cost of homeownership when budgeting for a home. In particular, new homeowners think to budget for the cost of their mortgage, yet fail to consider how the cost of their homeowner’s insurance policy may affect their monthly budget.

As a new homeowner, you certainly don’t want to be faced with a tough budget that can feel downright overwhelming at times. To ease your financial stress, you will want to consider the many ways in which you can lower the cost of homeownership.

Perhaps the best way to lower your cost of homeownership is through your homeowner’s insurance rates. Many homeowners, for example, are under the assumption that homeowners insurance is similar from company to company, policy to policy, when nothing could be further from the truth.

From property value and geography to credit ratings and plan types, homeowners insurance can vary quite a bit in cost.

Credit Ratings

Your credit rating may play a big role when an insurance company determines your homeowner’s insurance rate. In short, insurance companies use an applicant’s credit history when determining insurance premiums, so the better your credit the better your homeowners insurance rates will likely be.

Insurance companies, much like any other company, determine rates based on risk; and the poorer your credit score, the more risk the insurance company is likely to assume. There are many reasons to maintain a good credit score; and even more reasons than you may not even be aware of.

Location, Location, Location

Your homeowner’s insurance rates may vary greatly, depending on the location of your home. For example, individuals who choose to live near the shore can expect to pay higher homeowners insurance rates than someone who lives inland. In other words, the idea of owning an oceanfront property may sound idyllic, but paying the costly homeowners insurance rates may just smash that idyllic image to bits.

Customization

Your homeowner’s insurance policy should not consist of a general, blanket coverage; instead, it should be customized to suit your individual needs and budget. For example, you may choose to raise your deductible on your policy to save money each month, or you may decide to take out a policy with a lower deductible to ensure that your next homeowners insurance claim won’t leave you broke. Either way, your policy should be customized to suit your individual preferences.

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