Investing in a house is everyone’s milestone. It also means you have to buy home insurance, so it is a sensible decision to consider the different insurance options.
House insurance premiums depend on different factors, out of which many are controllable. You have to move smartly to get a suitable coverage you require and save plenty of dollars every year.
The tips below will help you in protecting your house and attain peace of mind.
Know the facts – Gather as much information about the particular house you like to determine its possible insurance premium. The age of construction materials, plumbing, electrical and other systems inside the house can influence the insurance costs.
For example, less flammable roofing material of masonry homes can reduce your insurance premiums especially in dry regions, where fire damages are most susceptible. Alternatively, masonry homes can be very costly to be insured against earthquake damages.
Location can affect – Besides homebuilding materials used, your house location can have significant effect on the premiums and coverage accessibility.
Homeowners are likely to pay more for coverage in areas susceptible to natural disasters and severe weather like wildfires, earthquakes, hurricanes or tornadoes. The neighbourhood you decide to stay can also influence premium rates.
For example, houses near to fire department cost less for coverage. Living secluded has many advantages, but it will not reduce premiums because in case of emergency help cannot reach your home on time.
Assess how much policy is sufficient – More than 50% homeowners are underinsured because they do not cover their houses to ‘replacement value’. The replacement value means current rebuilding cost of a house from foundation.
So spend time to assess the right upfront amount and make certain that the insured sum escalates with inflation (price increases) and new purchases.
Benefits of floater insurance – A standard Kodukindlustus policy covers the home structure and some personal belongings, but not a full protection to high value possessions like jewellery or coin collection. You can add floater insurance for valuable possessions that guarantees homeowner to give full value in case of loss, damage or theft.
Homeowners Liability coverage – In this policy you are covered against the conditions given below up to a certain specified limits.
- Injuries to guests in your home
- Damage to your neighbour’s property
- Careless acts away from home
- Lawyers fee for defence procedures when sued for negligent act
Consider a comfortable deductible level – Deductible level is the amount to pay from your pocket during a claim. Selecting a high deductible like $900 instead of $400 can significantly cut down the monthly premiums. On the contrary, you are comfortable to pay high monthly premium because it can give you serenity in case disaster strikes.
Save on premiums using safety measures – Monitored security alarms and deadbolt locks prevent costly break-in, which often helps to get a discount. Fire extinguishers are also a good addition to the house that reduces the risk of severe damage due to smoke and flames.
Have record updated -Inform the insurance provider about the renovation you made after moving in because it can affect your home’s replacement cost.
File the purchase receipts of your belongings, take photos of your belongings especially in the rooms they are placed or a video recording. Store the record outside your house to protect it from disaster. This record is a proof of ownership and can help insurance company to assess your payment in case of loss.
Author’s Bio : Ken Wilson has been working with one of the best provider of kodukindlustus or home insurance for many years now. They offer home insurance at 15% less than the regular market price. Visit their website for details.