|
What To Consider When Creating A Homeowners Insurance Policy
Author David Schneider | Aug 29,2007
|
If you consider the following recommendations when you create your homeowners insurance policy, you will likely save hundreds of dollars a year without sacrificing coverage in the event of a disaster.
1. Go for a higher deductible
By opting for a higher deductible, you could save money each month on your premium. If your home is ever severely damaged - or even destroyed - it's not going to matter much to you whether you pay a $500 or $1000 deductible to recover hundreds of thousands of dollars worth of home and personal property value. Better yet, if your home is never damaged, you will be saving money each month on the premium.
2. Consider "replacement" coverage instead of actual cash value coverage
Replacement coverage will provide the amount necessary to actually replace all of your belongings. Homeowners insurance coverage that is based on actual cash value may be cheaper, but it will only provide for the current value of your damaged items. With depreciation factored in, this might not be enough to replace your personal property.
3. Do not insure your land
When you sell your home, the value of the land it sits on adds to the sale price. However, when you are buying homeowners insurance, you do not need to include the value of your land, since the land will remain in the event of a disaster. If you forget to subtract the value of your land when determining the amount of coverage you need, you will end up paying higher monthly premiums for coverage you don't need.
4. Remember to consider other special coverage you might need
If you have particularly valuable items in your home, such as an old baseball card collection or antique jewelry, you might need other policies outside of your homeowners insurance policy to cover these extra special items. Ask your insurance agent exactly what is covered in your policy.
5. Upgrade your home to get homeowners insurance discounts
Since homeowners insurance usually covers theft and vandalism, many insurance companies will offer a discount if you upgrade your locks or install an alarm system. The same is true of a variety of other safety measures, such as installing fire-resistant roofing materials or smoke detectors. You should ask your insurance agent when you are creating your homeowners insurance policy which specific home improvements will lower your premium.
6. Don't forget that floods and earthquakes are not covered by regular homeowners insurance
You should buy flood and earthquake insurance if you live in an area that is prone to these types of disasters. Flood insurance might be particularly useful now, as insurance adjusters are frequently classifying many kinds of water damage as flood damage (hurricane damage, for example), even if an actual flood did not occur. |
|
|
Print
E-mail
Del.icio.us
Digg
