Mar 3, 2013

Home Owner’s Insurance And You – Tips And Advice

Even smaller homes today can cost you a small fortune, so it’s just a smart move to make sure that you’re protecting that investment. Having a good home insurance policy is not only mandated depending on where you live, it’s simply smart business. Here are some great insurance tips you can use to your advantage.

If you have an older home, consider upgrading or modernizing heating and plumbing systems to decrease your home owner’s insurance premiums. These improvements can reduce risk of electrical fire or water damage, making it possible to lower your insurance costs. At the same time, these improvements can make your home safer and increase the value of your property.

Actual Cash Value

Understand home owner’s insurance terminology. For example, the actual cash value of an item is the item’s actual value less its depreciation. For example, if you paid $500 for something two years ago and it has an expected useful life of 10 years, then you have already used up about 20 percent of the item’s value, before it was lost or damaged. Because the insurance policy is based on the actual cash value (ACV), it will only pay you the remaining 80 percent of the item’s value.

Make sure your homeowner’s insurance policy is a “guaranteed replacement value” one. This protects the investment you have made in your home, because if your home is destroyed in a natural disaster, it will be reconstructed, regardless of the cost. Building a home increases in cost every year. This type of policy gives you a financial cushion and absorbs the increasing home-building costs, so you don’t have to.

TIP! Raise your deductible and your annual premium will lower accordingly to reflect this change. Remember that smaller repairs can end up being an expense out of your pocket.

When you get a home insurance quote this will make sure that your home is insured correctly. The insurance policy may be for less than what you paid for your house. This is because insurance companies will not insure the land the home is on, only the house.

If your neighborhood experiences structural changes, notify your insurance company of the change. Additions such as a new fire hydrant closer to your property or opening a new fire or police station nearby can affect the rates of your home owner’s insurance. In many cases, a simple telephone call is all that is required to take advantage of neighborhood changes like these.

Insurance companies aren’t in the business of giving you a call when they think they can save you money. That isn’t good business practice! It’s up to you to call your insurance provider and let them know of any changes in your life that could get you a discount on your premiums.

TIP! You should always make sure that any contractors you work with on your home are licensed properly. Whether you are planning to add an addition, or just fixing damage, using a licensed contractor may affect the way your insurance company sees the structure.

It is cheaper to get and keep homeowner’s insurance if you do not have injury prone devices. Insurance companies see pools, trampolines, and other similar objects to be a higher risk for injury and will therefore raise the amount of your premium. Although having a pool may be fun, removing it will save you money!

To keep your coverage up to date, be sure to review your homeowner’s policy every year. Let your insurer know of changes in your home and property that may help keep your premiums down. For instance, if you have replaced a shake roof with something more fireproof, like composite shingles, you may get a premium reduction.

Remember that anything can happen to your home at any time. If you want to ensure that your home is fully protected, then you need to be insured. There are no two ways around that fact. If you use the tips you’ve just learned in this article, you can work to save money on a great insurance package.

With Florida home insurance we offer competitive rates.

Questions?We can help you! Call us at (866) 771 4715 or click contact us to the right.

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