Home Insurance Tips
Everyone wants to get the best home insurance deals. However, getting a cheap policy might be difficult for some people. If you want to get a good deal, there are several strategies you can use to save on your insurance premiums.
Although the first step is to shop around, you need to understand your home insurance policy features and how to make your claims. Below are some tips that will help you get the best deals when buying a home insurance policy.
Tips for getting the best home insurance deals
1. Compare different companies
The first step is to compare different insurance companies. This will help you get the best and the most affordable policy. Apart from the rates, go through customers’ feedback to know whether the company you choose has issues when settling claims.
2. Raise your deductibles
The deductible is the money you pay for damages or expenses before your insurance company settles your claim. To get the best insurance deals, you need in to increase the deductibles. However, do not make them too high that you might not be able to pay.
3. Choose the right policy
We all have different needs when it comes to home insurance. Since insurance providers offer different coverage, make sure you choose the right one for your needs. Also, read through the terms, coverage, and exclusions before you sign the deal. There is a chance that you will get a policy that can save you a lot of money.
4. Check your credit score
When determining home insurance premiums, your credit score is very essential. Therefore, make sure you maintain a good credit score. Also, before you sign the deal, check the credit score to make sure it is error free and it is up to date. Most insurance companies use the credit score to calculate home insurance premiums. If your score is poor, there are a number of methods you can use to increase it.
5. Merge all your insurance policies
If you want to get the best home insurance deal, merge all your insurance policies. Check whether your insurance provider has other products you may need. For example, you can merge home insurance, car insurance, and health insurance. Consolidating the policies will give you good deals, get discounts, and enjoy paying one bill to one company. In addition, making a claim from one provider will be much easier.
6. Protect your home
Another way to save on home insurance premiums is protecting your home and your personal belongings. Actually, most insurance companies offer discounts of 15% or more for clients who protect their properties against disasters such as fire or robbery. This is because a home with a CCTV system is less likely to be burglarized than one without. So, if you have installed a security system in your home, ask your insurance provider how much discount you can get.
Bottom-line
These are some of the main tips for getting the best home insurance deals. Whether you are shopping for a new home insurance policy or you believe your current premium is expensive, the above tips can help you save some money.
Home Insurance Types
Home insurance is a broad term that encompasses different types of coverage for houses, apartments, condos, mobile homes, tiny homes, landmarks, and historical homes. The following are the different types of home insurance:
1. HO1- limited coverage policy
This is the most basic type of homeowners insurance you can get and the most limited. It only covers specific perils outlined in your policy, which are 10 for HO1 policies. These perils include fire/smoke, lightning, explosions, theft, vandalism, hail/windstorms, damage from aircraft, damage from vehicles, riots, and volcanic eruption.
HO1 policies do not include personal liability coverage or personal property coverage.
HO2: broad form
HO2 policies are more popular than HO1 policies and cover the same perils, plus:
- Falling objects.
- Freezing of household systems.
- Accidental overflow or discharge of water.
- Sudden damage from artificially generated electric current.
- Sudden tearing apart, burning, bulging, and cracking of pipes and other important household systems.
- the weight of ice, sleet or snow.
HO2 policies also cover your personal property and even personal liability sometimes.
3. HO3: special form
Special form policies are by far the most popular home insurance policy. They are generally affordable and cover everything except anything specifically outlined in the policy. Common exclusions include earth movements, power failure, war, neglect, nuclear hazard, government action, among others. HO3 policies usually include all six core coverages; Dwelling, personal property, other structures, loss of use, medical payments to others, and personal liability.
4. HO4: comprehensive form
HO5 policies are the most expansive, but also the most expensive type of home insurance coverage. They are very similar to HO3 policies, but with the following differences:
- HO5 policies reimburse both personal property and dwelling coverage claims based on replacement cost value, which pays to replace the property. On the other hand, HO3 policies are usually actual cash value policies, which pay the replacement value minus depreciation.
- HO3 policies are named peril for personal property and open peril for dwelling. HO5 policies are open peril for both personal property and dwelling.
HO5 policies are favorable for new homes in low-risk areas with higher property values compared to the rest of the state.
5. HO8: older homes form
This type of policy is designed for homes that are:
- more than 40 years old
- don't meet all the cosmetic and structural update requirements found in HO3 policies. If you own an old home and want to qualify for a HO3 policy, you will have to update the HVAC, electrical, roofing and plumbing systems.
HO8 policies are similar to HO1 policies as they are named peril plans which only cover 10 perils.
6. HO4: Tenant's form
These are also known as renters insurance and are created for renters of homes and apartments where they live. It protects personal property and other parts of the home you own, such as the cabinets and fixtures you installed.
7. HO6: Condo Form
HO6 policies are for people living in condominiums and co-ops. The amount of coverage varies based on how comprehensive the master policy of the whole building is.
8. HO7: mobile home form
HO7 policies are identical to HO3 policies but are designed specially for mobile homes. This includes trailers, park model homes, RVs, sectional homes, and modular homes.
Home Insurance Facts
Home insurance has been around for a long time. It covers accidental damages to your house and your belongings due to fire, storm, theft, and other natural disasters. If you are planning to buy home insurance, there are several things you need to know. Unfortunately, most people purchase home insurance without understanding the facts and the basics of the policy. Below are ten points you should know about home insurance.
10 Facts about home insurance you should know
1. The basic coverage – The basic policy covers fire, storm, theft, and natural disasters. It also includes liability in case someone suffers an injury in the house.
2. There are different types of policies – when shopping for a home insurance policy, understand there are several policies. Hence, educate yourself about the coverage and the options you have. The most common home insurance policy is HO-3. It protects your home from various damages.
3. Some damages are not covered – home insurance does not include all disasters. In some policies, disasters such as earthquakes and floods are not covered. Also, there are some personal belongings or living expenses not included in the plan.
4. Be cautious with your claims – when it comes to claims; most insurance companies are very tight. And since homeowners insurance does not cover everything, you need to be careful with your requests. Make sure you understand the damages and items included and the type of policy you have.
5. There are discounts – when shopping for homeowners insurance, it is necessary to check for discounts. For instance, if you have installed smoke detectors, you have fire extinguishers and introduced other safety features, you can get a good discount.
6. Home maintenance matters – an insurance company would want to insure a well-maintained house. So, if damages occur due to your negligence, the company can reject your claim. Therefore, keep your home well-maintained by having regular roof inspections, trimming trees, and repairing the leaking pipes.
7. Your credit score matters – your credit score can affect your house insurance policy. If you have poor credit, your insurance premiums will increase.
8. There is claim deadline – if you want to make a claim for significant damages, do it as fast as you can. Most policies have a fourteen-day reporting window. If you miss the deadline, you will have to make repairs on your own.
9. Know the Deductibles – the amount you pay for the damages or expenses before your insurance pays for the claim is called a deductible. Therefore, ensure you know the deductible on your home insurance policy.
10. You need a home inventory – no one would want to have his or her claim denied by the insurance company. To avoid such a disaster, have a list of your items and what you paid for them.
Most people think that spending money on insurance coverage is a waste of money. But when a tragedy strikes, having an insurance cover can save you a lot of money and anxiety. Therefore, consider having home insurance to protect your house and your belongings. To make sure you not overpaying your home insurance, shop around for great quotes.