Posts Tagged ‘homeowners insurance’

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Why your Homeowners Insurance Rates may be going up

Wednesday, June 16th, 2010

If you continue to see your homeowner’s insurance rates climbing, you may want to take the time to consider what may be the cause. Although there certainly are factors that are beyond your control, such as the state or city in which you live, there are many things that you may unknowingly doing to jeopardize your low rates:

  • Purchasing an “unsafe” breed of dog - There are simply certain types of dogs that are deemed to be “unsafe” by homeowners insurance companies and, as a result, you may end up paying more if you purchase a dog on the list. Before purchasing a new dog, it is best to contact your insurance agent and ask about their list of unsafe dogs. The general line of thinking is that certain breeds are more likely to attack people and cause injuries which, most of the time, are dealt with through your homeowners insurance contract.

  • Filing a series of claims - Filing one claim will not likely influence your homeowners insurance; however, multiple claims, even if they are not your fault, may cause an increase in your rates. If your home becomes damaged and the damage is minor, consider paying it out of pocket yourself instead of filing a claim. Limiting your claims will likely have a positive effect on your homeowner’s insurance rates.

  • Buying a home with a history of claims - If the previous owners of your home filed many homeowner’s insurance claims then you may be paying for their claims. A property with many claims may indicate an unsafe property to the insurer.

  • Late tax payments - If you fail to pay your taxes on time, your insurer may end up raising your homeowner’s insurance premiums because you are considered a payment risk. Make sure your payments are current to keep your homeowners insurance rates at bay.

  • Low credit score - If you fail to pay your bills and your credit score plummets, chances are your insurance rates will go through the roof. It is important to realize that a low credit score doesn’t just affect your credit, but other types of insurances and payments, as well.

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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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You can Lower your Homeowners Insurance Rates!

Tuesday, June 8th, 2010

You don’t need to give up good coverage to lower your homeowner’s insurance rates. You do, however, need to do your homework to ensure that you’re getting the best policy at the best rate.

First of all, it is important to understand that your homeowner’s insurance premium is typically dictated by where you live. In other words, don’t be surprised to find a huge difference in insurance premiums if you move from one state to the other.  Just like real estate, homeowner’s insurance prices vary widely, so don’t expect to pay the same rates in Florida as you did in Pennsylvania.

With that said, here are some inventive ways to lower your homeowner’s insurance premium - without lowering your coverage:

  • Raise your deductible - One of the easiest ways to see a significant drop in your homeowner’s insurance rate is to raise your deductible. Many homeowners, for example, can expect to see a decrease of about 25 percent, merely from raising their deductible from $500 to $1,000, according to the Insurance Information Institute. A larger deductible usually makes sense for most homeowners, as they will usually not file a claim unless there is significant damage. It is important, however, to make sure that you have $1,000 set aside in case you need to file a claim.

  • Bundle your policies through one company - Simply by buying two or more policies from the same company can reduce your rates anywhere from five to 15 percent, according to the Insurance Information Institute. Called an umbrella policy, you can choose to purchase your life, auto and homeowners insurance through the same company and save big.

  • Improve your home’s safety - Home improvements may go a long way when considering your homeowners insurance policy rates. Replacing your roof, updating your electrical service or adding a safety feature, such as an alarm or sprinkler system, may allow you to receive a lower-cost policy. At the same time, you may want to consider getting rid of the swimming pool or trampoline in the backyard; both of which may raise your insurance rates significantly.

  • Keep an eye on your rates and check them annually to ensure that you are receiving the most competitive rates.

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Have you Reviewed your Homeowners Insurance Policy Lately?

Thursday, June 3rd, 2010

We’re all guilty of it. We get our homeowners insurance policy, pay the monthly premium, and then forget about it.  However, this may not be the best strategy, as it’s usually not very pleasant to find out that you’re not properly insured until a crisis happens.

It is important, regardless of where you live in the country, to take the time to review your homeowner’s insurance policy on a yearly basis. It doesn’t take long, and it could save you big in the event of a catastrophe.

Here’s what you’ll need to do:

  • Make sure you have the coverage needed. It is important to review your policy each year to ensure that your home and your possessions are adequately covered in the event of a disaster. In other words, make sure your policy covers you in the event of a total loss.

  • Pay close attention to policy limits and exclusions. Not all homeowner’s insurance policies are created equal, so check your policy to make sure that the exclusions and policy limits of your policy are reasonable and that your deductible is manageable.

  • Don’t assume your homeowner’s insurance policy covers all natural disasters. Ask your homeowners insurance company about natural disasters, such as floods and hurricanes. If your policy doesn’t cover these disasters (most don’t), take out another policy that will.

  • Update your home’s inventory. It is always best to have an updated inventory of the contents of your home in case you need to file a claim with your insurance company. It is often convenient to videotape the rooms of your home and narrate the contents, including their dates of purchase and their purchase price. Then, keep the video somewhere safe; preferably in a fireproof safe or safe deposit box.

  • Search several websites to ensure that you are still getting the best price for your homeowner’s insurance policy. But remember, cheaper isn’t always better! Take care to make sure that you are receiving a competitive rate on your policy, and that the company your policy is under is reputable and financially stable.

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Understanding Fire Insurance

Thursday, May 20th, 2010

Most homeowners and renters have some kind of fire coverage if they carry an insurance policy. For those who do not have the coverage, it is something you might want to seriously consider. Fires can strike anytime, anywhere, without warning. If you are lucky to come away from it with your life, you will most likely have lost much or all of what you owned before. Fire insurance can ensure that you have the coverage to get back on your feet and replace what you had.

Understanding Fire Insurance

Even those who do have the coverage do not often understand what fire coverage really is and how it works. After all, no one really expects a fire, nor is the insurance used by every individual who has it.

Most fire insurance policies consist of at least four parts: coverage for your home, coverage for outlying structures (not attached to the home), your personal property, and loss of use or living expense coverage (allowing you to get back on your feet and find another place to live either during repairs or permanently).

Most fire policies do limit the amount of coverage, so if you have additional valuables, such as jewelry, furs, etc. You might want to consider housing those in a safe place where there is little risk of fire or get yourself additional endorsements on your insurance policy. It is an important thing to consider, especially if you are someone who would prefer to rebuild rather then to move elsewhere permanently. If your dwelling was older, your city might require code upgrades. In this case, the insurance company coverage cap might put a damper on repairs without an additional endorsement.

All Your Stuff

Whether it is with a video camera or snapshot kind of camera, catalog everything that you own. If you own the property and the dwellings, document it. Go through the house and document all your personal property, in writing and on video or in pictures. You need to know what you have and what it is worth and so does the insurance company. This will benefit you a lot if you ever have to file a fire claim. Once you do this, ensure that your insurance company has a copy and give one to a family member or put one in a safe deposit box.

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Homeowner’s Insurance and Mobile Homes

Wednesday, April 28th, 2010

Just because your mobile  home is not the traditional house, doesn’t mean you don’t need to insure it. A mobile home is, in fact, a home. You either live in it, use it as a vacation retreat or rent it out. That makes it a home, and you have a vested interest to protect that home.

While there is not a significant difference between regular homeowner’s insurance and that for mobile homes, there are still a few things that the mobile homeowner will want to be aware of when it comes to insuring their property. The first thing to think about is insuring the mobile home prior to occupancy, if possible.

Insurance for fixed homes

Regular houses set on a foundation and not typically moved from Point A to Point B at one time or another - is pretty standard in what it covers. While mobile home insurance does offer some of the same coverage, insurance companies take other things into account, like the fact that mobile homes are more easily destroyed by certain natural disasters and are more than likely going to be a total loss in the case of a fire. This kind of insurance caters to the needs of mobile home and their owners, covering everything from theft to physical damage and disasters. Policies differ from company to company, but you will typically find both peril and comprehensive plans to fit your needs. Packages may include coverage for personal property, medical/injury claims should anything occur on or withing your property to a guest, fir coverage, disaster coverage, extended coverage, emergency removal and much much more.

Costs

Because of the very nature of a mobile home, insurance companies know they are a higher risk than an actual house. Therefore, the cost of insuring a mobile home can and probably will be a bit steeper than the cost of insuring a house. Still, it is worth it to have your assets covered. Find yourself a reputable, licensed agent who offer insurance for mobile homes and discuss the policy offerings and pricing. Get some quotes from others and compare pricing.

Keep the following things in mind as well:

If you want to insure a mobile home, you need to have enough income or money on hand to pay the deductibles and to maintain the home. lack of maintenance and not meeting your end of the deal with the insurance company can result in not having the benefits available if and when you need them.

The age of your mobile home will be a huge factor, not only in the rate you pay, but in deciding whether it is insurable at all. Newer mobile homes are more likely to be insured, whereas, if you own a mobile home from the days of cardboard flooring and paper thin walls, circa 1972, you might find that there is little to no insurance coverage being offered to you.

Tie downs might yield a discount or at least decent coverage. Many insurance companies not only request this, many are now requiring this of moiled home owners. This includes tie downs, ground anchors and, of course, foundations.

If you find that your particular mobile home can be insured, do it. You will not regret it if it comes down to needing the benefits after all.

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Homeowner’s Insurance: How to Save Yourself Some Cash

Friday, April 23rd, 2010

If you’re a homeowner, you want to protect your home and all that is in it. However, you certainly do not want to go broke in the process. If it seems like your homeowner’s insurance rates are eating up more of your income than you would like, there are a few things you can do to bring that rate back down to a level that has you breathing a sigh of relief.

Most importantly, shopping around could be the best way to find a rate you can live with. Compare prices and go with the best plan that does not demand a couple of your beloved limbs in the process. However, if this doesn’t cut it for you, look into the following options:

Your Credit Score

How is your credit score looking these days? If you have run into a few speed bumps here and there and it has adversely affected your credit, this could be the reason for your higher insurance rate. As long as you are ready to take on the expense of homeowner’s insurance and keep your premiums paid, you might want to look into a insurance company who does not check your credit. This could save you a bundle right up front.

Keep Your Policy Updated

If you have sold some valuable possessions, you obviously won’t be needing the same amount of coverage. Check your policy often and ensure that things you no longer own are taken off and be sure to add on new purchases.

Association Benefits

Are you a member of some alumni or business association? Whatever group you belong to, find out if there are group insurance rates or discounts that you could take advantage of to save some money in the long run.

Non-Smoking Home?

If no one in your home smokes, and you adamantly do not allowing smoking inside your home, mention this to the insurance company. Considering the fact that smoking accounts for 23,000 residential fires per year, your lower risk home could bring you a discount in premiums.

There are many, many more ways to save yourself a ton of money on your homeowners insurance. Don’t be afraid to look into your options and take advantage of each and every discount you are eligible for.

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Homeowner’s Insurance: Home Inventory Tips

Monday, April 19th, 2010

When you purchase a homeowner’s insurance policy, one of the most important parts of that policy is up-to-date documentation of the things that you own. If you own many items, it can seem like an overwhelming task to take inventory of each and every little thing that you want covered by your policy. Sure, it takes some time and effort, but it is well worth every second in the event of theft or some other disaster that takes away or destroys the possessions you cherish so much.

Sure, it is doubtful that every little thing could be replaced, especially those things with sentimental value, however, you can still benefit from insurance by not having to spend out of pocket to replace some of your more expensive treasures. After all, you probably worked pretty hard to buy those things in the first place. Here’s a few tips for taking a home inventory that will make things a lot easier in the long run.

Inventory

You can print off a checklist from some websites or get one from your insurance company. However, it is also advisable to just go from room to room and start making a list of what you own. Be sure to include any serial and model numbers, brand names and other pertinent info. For major purchases, hang onto the receipts in case you need them later on to prove ownership or purchase price.

Spreadsheet

With today’s programs like Excel and other spreadsheet software, you now have a great tool to track your items and easily update the list. Prepare a spreadsheet listing the item, the brand, the make /model/serial number, location within the home, purchase date and price, replacement cost/depreciated value and any notes you feel are important about the item.

Photos

Take photos of everything. Take several, in fact. Capture the item itself on file, serial numbers and other info and even distinguishing marks.

Backup

Print hard copies of your spreadsheet and photos. With your receipts, keep the originals, but make copies of them as well. It is also good if you can scan them into your computer. Back everything up on CD or flash drive, that way, you always have a copy.

The Insurance Company

Provide the insurance company with a copy of your home inventory list and photos, as well as receipts, if you choose to include those. This will go into your file as a permanent part of you policy, as long as it is active.

Updating

If you buy something new and want it covered, update your list and add a new photo or set of photos. Make sure the insurance company is made aware of the update too. Remember to delete any items you no longer own and let the company know that as well.

The good news is that if you follow these steps, you will only have to do a major home inventory one time. Updating the list will then be as easy as 123 and everything you own will be covered in the unfortunate event of a loss.

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Protecting Your Home and Everything You Own

Friday, March 19th, 2010

The majority of us work extremely hard for what we have. We take pride in our homes and the things we have acquired through the years. It doesn’t make us materialistic; simply happy to have what we have. However, disaster and chaos can strike at anytime, often without warning. The prospect of losing everything, or even a portion of everything, is certainly not a pleasant thought. What can you do to prepare for the worst?

Homeowner’s Insurance

If you own your home, homeowner’s insurance is a great thing to have. More often than not, your mortgage company will demand carrying of a homeowner’s policy as part of the terms and conditions for your mortgage. Homeowner’s insurance can take care of everything from minor repairs to major repairs and replacement of things contained within the home. You will, of course, have to take inventory of your valuables (including pictures) for them to be covered by the policy, but it’s well worth the time and energy spent to know your losses will be covered.

Homeowner’s policies typically cover theft and disasters. Should a burglar break in, you can count on your policy to reimburse you for the things that were taken. Should you spring a leak, your homeowner’s insurance is there. Most natural disaster’s will be covered too, however, there are often loopholes that preclude certain disasters, flooding being a popular example. Nevertheless, you can often add-on to your policy with disaster-specific insurance to ensure every possibility is covered. Homeowner’s insurance will also cover accidents that might occur involving guests on your property on inside your house.

Renter’s Insurance

You’re a renter, therefore, your landlord carries the homeowner’s insurance, so you don’t need to have insurance, right? Think again. The landlord’s policy is not going to cover the loss of your personal property or any accidents that occur within your home. for a small price, you can get a renter’s policy that will cover your belongings, guest accidents, and certain disasters that your landlord’s policy won’t cover, keeping you protected. It’s a small price to pay to wipe extra worries away.

Whether you own or rent, it is always a good idea to carry some kind of home insurance coverage to ensure that all your assets are always protected.

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Important Steps to take if your Home is Damaged in a Storm

Friday, February 12th, 2010

The next time the wind is howling and the rain is pelting against your windows, you may be in for a big surprise, as often strong storms can lead to a damaged home.

Once the storm has cleared and you are able to clearly see the extent of the damage, you must act immediately so that you can be assured that you are covered under your homeowner’s insurance policy. In other words, if you delay filing a claim, you may be out of luck when it comes to recovering money for your damaged home.

Here are some helpful tips for taking care of business if your home becomes damaged by a storm:

  • Pull your homeowners insurance policy out and carefully read the policy’s terms and conditions so that you can be sure that your policy covers your specific type of damage. For example, a leaking rook would likely be covered, but a flooded basement likely would not.

  • Call in a contractor to assess the damage and provide you with a repair estimate. It is important to get a quote (or several, if necessary), so that you can make the determination regarding whether your damages exceed your policy’s deductible. In other words, it doesn’t make much sense to contact your homeowner’s insurance company and begin the tedious process of filing a claim if your damages amount to only a few hundred dollars.

  • Once you have received a quote, it is time to make a call to your homeowner’s insurance company. However, think hard about whether you want to make a claim, as this could potentially raise your homeowner’s insurance rates. In other words, if the damage is minimal and your homeowners insurance would only cover a few hundred dollars, you may be better off paying for the damages out of pocket and forgoing the process of filing a policy, as the increase in your homeowner’s insurance premiums will likely exceed the damage amount.

  • Don’t forget to take pictures of the damage and keep all receipts and repair paperwork so that you have a clear paper record of the damage and the subsequent repair.

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