A problem with homeowners insurance is that not all homeowners insurance policies are created equal, which makes it difficult to compare homeowners insurance like with like. The coverage provided varies from policy to policy along with the premiums. So having an idea of what needs to be insured and the approximate price to replace your insured items.
Cut the risk, cut the cost
Homeowners insurance policies cover you against the risk of financial loss. But in order to cut the cost of your homeowners insurance you must first cut the risk to the homeowners insurance company and you'll be rewarded with a lower premium. Here are some ideas to help you in lowering your premium...
• First contact your homeowners insurance company or local neighbourhood watch for the to supply a list of steps to make your house less targeted by thieves.
• Make sure all windows have locks and doors are secured with a level 5 deadbolt. A couple of the homeowners insurance companies will give you up to 10% off your homeowners insurance premium if you have these locks to secure your house.
• Having a trusted alarm fitted by a recognised alarm fitter, which your homeowners insurance company will be able to recommend, may get you an additional 10% or more off your policy.
• By paying a deductible on homeowners insurance claims, you can receive a cheaper plan.
• Some homeowners insurance companies even offer discounts if you live in a neighborhood watch area; however this is less common.
• No claims bonus. As with your car insurance; a record of no previous claims will reduce your premium. When making a claim, consider whether it may be cheaper to pay for the loss yourself and avoid an increase in premiums.
• Your age. Statistically, the older you are, the less likely you are to make a house insurance claim. So if you're a lower risk this will be reflected in your premiums. Some companies offer extra benefits to those over 50 such as Saga.
• Your lifestyle. If you have a dog, or don't smoke, be sure to let your homeowners insurance company know as it may reduce premiums.
Before you carry out any security improvements to your home, always check with your home insurance company first. They will confirm which improvements will have the biggest cost cutting impact.
Knowing what homeowners insurance you need
Coming to an accurate figure for the buildings and homeowners insurance contents value can be awkward, which is why most homeowners are either under insured or paying for coverage they don't really need.
Buildings insurance only covers the re-build cost of your property NOT its market value. Re-build value of your home is based on the cost of re-building it in the event that it is destroyed by fire or subsidence. The re-build value of your home is usually on your mortgage agreement, or property deeds.
Then you have homeowner contents insurance which covers almost everything else you would take with you if you moved to a new house. List all of the rooms in your house and write down the items contained in each with there value.
Look at separate buildings & contents insurance
Compare homeowners insurance
When you compare homeowners insurance you yield the biggest savings on homeowners insurance.
Now dont go running off with the homeowners insurance supplied by your mortgage lender. These can be convenient when your busy sorting your mortgage, but are often over priced and they also probably didnt compare homeowners insurance against other policies on the market.
When you compare homeowners insurance you basically have three options; go direct to the homeowners insurance company, browse the web or use a broker. Hence COMPAREeQUOTES
Last Ask for a bargain
Homeowners insurance has a margin of profit built in which can be negotiated down if you're armed with the right info. Not all homeowners insurance companies will buckle and concede an additional discount but if you don't ask you THEY WONT TELL.
• First, find the cheapest quote after using internet to compare homeowners insurance companies and phoning a few brokers.
• Select the cheapest homeowners insurance quote and contact your existing homeowners insurance company first asking them to beat it. If they won't budge contact the second cheapest homeowners insurance company and do the same.
• If after your best efforts, the homeowners insurance company won't budge, ask them to throw in some extra coverage to sweeten the deal or move on to the next homeowners insurance company and repeat the same steps.
