Posted by Elizabeth Dennis on October 30, 2011 | No Comments
Purchasing a house is the single largest decision that you will ever make in your life. Not only are you trying to find the perfect house to make a home, but you are also trying to get the best deal possible. One of the things to consider other than the cost of the mortgage itself, is the price that you will wind up paying for insurance.
Some homeowners, especially new ones, don’t think about this additional cost and how it can take them over their budget. In fact, homeowner’s insurance is required when you get a mortgage so it is not an expense which you can skip. In order to keep the cost of homeowner’s insurance down, here are a few tips which you can follow.
Shop Around
No one really wants to spend time shopping for insurance, but it is a great way to save you a few bucks on your policy. Be sure to ask your friends who they use and you can even contact your state insurance department in order to get a complete list of agencies in your area. Of course, don’t forget to look online as well as some agencies may have more of a virtual presence than a real brick and mortar one. You can also use online quote services to help you find an idea of the price you are likely to pay.
Change Your Deductible
In order to get a better out of pocket rate each month, you may want to raise your deductible. This is the amount of money in which you will have to pay toward a loss before the insurance will begin to pay on a claim. The higher your deductible, the more money you save on the premium. For example, if you raise the deductible from $500 to $1000, you could save 25%. However, be sure to take into account where you live. If you live in an area prone to hurricanes, for example, this may not be the way to go or you may need another policy for specific damages.
Use the Same Agency
Many insurance agencies will give you a discount if you have multiple policies with them. That means if you have your home along with your cars and even your life insurance, you will wind up paying less in premiums on all your policies.
Home Security
Another way to cut down on insurance premiums is to upgrade your home security. You can get a 5% percent discount for smoke detectors, dead bolt locks and a burglar alarm. You can even get a larger discount if you upgrade to a sophisticated system that will not only call emergency services but also has a sprinkler system in order to protect your home in the event of a fire.
Credit
Keeping up your credit will also help you reduce your monthly premiums. More often, insurers are now looking at credit history and taking it into consider when writing your policy. The better your credit, the less you are likely to pay.
Posted by Elizabeth Dennis on February 11, 2010 | 1 Comment
The personal property coverage on your home insurance policy covers the contents of your home that are not a permanent part of your home’s structure.  In the event of loss, theft, or disaster; you will be reimbursed for these items.  Have you asked yourself lately what the items are in your home you would want covered if you found yourself in this situation?
Create a Home Insurance Inventory
It is highly recommended that new home buyers compile a home insurance inventory very soon after they move into their home. If you have been in your home for a while and haven’t done this yet; make it a priority. Let us take a look at why it benefits you to have this list before loss occurs or disaster strikes:
- Adequate Coverage – Preparing this list is the only way to be sure you have enough personal property coverage on your home. This is not something you want to learn after it is too late.
- Memory – In a time of crisis, it will be very upsetting and difficult to remember each and every item that was in your home.
- Claims – The insurance claim process will be sped up significantly if you have your home insurance inventory prepared and ready to submit.
- Tax Deductions – Uninsured loss is tax deductible. If you have this list available, it will be much easier to determine this uninsured loss tax deduction come tax time.
Making a List and Keeping it Updated
There a couple of methods you can use to make your inventory list. There are quite a few home inventory software packages out there now; many are built into home finance software. You can certainly go this route or perhaps even easier is to create your own simple spreadsheet. For ideas of the items to put on your list, browse the internet as there are quite a few samples available.
In addition to listing each major item, be sure to record any supporting information about your items. These could be serial numbers, brand names, appraisal values, how much you paid, etc. You can gather this information from product manuals, receipts, and appraisals.  If the idea of transcribing all of this information into your list is leaving you overwhelmed, here is a trick. Scan this information or better yet, take digital pictures of it all. It costs you nothing; so simply snap pictures of those receipts and manuals. This is certainly less time consuming than typing or scanning and you’ll immediately have a digital copy of it all. Just make a note in the list next to the item that there is a supporting photograph with more details.
By having your home insurance inventory list on your computer, you will be more apt to update the list regularly. When you buy something new, open up the list and type it in. Or snap a picture of it if your camera is at the ready.
Pictures and Video
The easiest way to record all of the smaller items in your home is to take pictures and/or video. Both are beneficial. As we have seen pictures are a great way to get record the details of an item. Video is a good backup as you are certainly not going to take a picture of every single item; the video will capture it all. The video will also give you and the insurance company a better perspective with regards to the size of your items such as furniture, the size of your curio cabinet, how big your closet is, the size of your rock collection, etc.
Speaking of closets, remember to include all closets, drawers, contents of storage boxes as well as attics, and basements when taking your pictures or video. Transfer these pictures and videos to your computer for easy access to them and be sure to back it all up.
Backing Up Your Inventory List
The final step in this process is extremely important. That is to not only backup your inventory list and supporting pictures and video but to store a copy of that backup somewhere OTHER than your home. Otherwise in the unfortunate event your house is destroyed, your list will be lost. Places off site you may want to consider are a safe deposit box, at work, or at a friend or relative’s house.
Make your home insurance inventory list today. When you have the completed list in front of you, take a few minutes to take a look at your home insurance policy. Make sure you are adequately covered and make it a habit to review your policy every year.
Posted by NewBuyer on January 6, 2010 | No Comments
A high-level look at managing risks and the costs of insurance. Although the resource encompasses all types of insurance (health, life, auto, home) the information will help you lower your home insurance costs by instructing you to carefully consider your deductible. From the resource: “Homeowners insurance should carry no less than a $1,000 deductible or substantially more if you can afford the first $1,000 to $5,000.”
Source: Forbes.com
Read More About Saving Money on Home Insurance at Newbuyer.com
