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Things To Consider When Buying Home Insurance


Do you want to protect your dream house from any disaster and danger? Take home insurance that covers your most valuable possessions.

buying home insurance

The following tips should be considered thoroughly when purchasing home insurance:

1. Maintain a good credit record: Most of the insurance providers check your credit history before offering insurance.  Make sure you have a good credit record to get the best home insurance without any trouble.

2. Increasing deductibles:  Increasing deductibles may decrease the premium rates of your policy. Pay deductibles with a saved amount or emergency fund.

3. Claim less:  A history of trivial claims may increase your premium rates. So try to decrease frivolous claims to get the maximum benefits.

4. Discounts and deals: Many insurance companies offer discounts on policies unless you ask them will not reveal the discount rates. Ensure you get the best discount on your policy. Also, make sure your insurer is providing a payment protection policy on your home insurance policy. If you are unable to pay your monthly payments PPI makes the payments and you can make PPI claims through claiming companies to get a refund.

5. Compare rates:  There are so many companies in the insurance market which are offering insurance with various rates. Compare the insurance policy rates with different insurers to get an initial idea. You may get the same policy for lower rates when compared to other company insurance policies that provide higher rates. Grab the lowest among the different home insurances.

6. Pay annually: If you want to save money on your premium, pay annually on your policy rather than paying monthly.  Premiums are frequently subject to administration and finance fees if you pay monthly.

7. Purchase online: Many insurance providers offer discount rates for online purchasers.  Some may reduce overall costs when you purchase home insurance online. So try to purchase your insurance online to save little extra money.

8. Purchase umbrella policy: Plan to take other types of insurances like health insurance, general insurance, and auto insurance from the same providers to get discounts. Some companies reduce premium rates when you buy other policies from them.

9. Stay with the same insurer:  If you are holding an insurance policy for longer periods in the same insurance company, you may get a special discount offer on your coverage. Some companies may decrease 5 % of premiums if you are with them for three to five years, and some companies may decrease 10 % of the premium if you are with them for six years.  So stay with the same insurance to get maximum benefits.

10. Improve home security:  Increase your home security with a burglar alarm, smoke detector, and dead-bolt locks. Install your home with a sophisticated sprinkler system to protect your home from fire. Make sure your home is fitted with fire and burglar alarm that rings at the fire, police, and other monitoring stations.

Because most of the insurance companies give discounts of up to 5 % for smoke and fire detectors and reduce your premium up to 15 to 20 % for the security systems.  Install your home with a strong security system that protects your home and saves your money.

How to Lower Your Homeowners Insurance Costs

Your monthly homeowner’s insurance policy premium can add a notable chunk of money to your house payment. No matter who you are or what your budget, every penny counts if you are conscious of your fiscal affairs. After all, who likes to throw money away on things that aren’t necessary? Did you know that your homeowner’s insurance policy could be costing you more than what you need and that there are ways to lower the cost of that insurance without risking your home? Here are five tips for lowering your homeowner’s insurance cost:

Comparison shop. Just as with any other type of insurance, you can save a lot of money by shopping around with different providers before committing. That is because different providers offer different coverage, and use different factors to determine your premium.

Safeguard your home. You can drastically lower your homeowner’s insurance premium by making sure your home has the best and most safety features possible. For example, by placing new fire/smoke detectors around the house, dead-bolting the doors, and installing an alarm, you can decrease your insurance obligation by as much as fifteen or twenty percent

Raise your deductible. The deductible is the amount of money you agree to come out of pocket when you make an insurance claim before the insurance company must come out of pocket. For example, you may have to pay a deductible of $2000 for smoke damage to your home, and the insurance company would pay the rest. By raising the deductible, you offset the insurance company’s risk, and your premium will be lower to reflect that.

One-stop shopping. Most insurance companies offer discounts for having multiple policies with them. Therefore, it is in your best interest to look into placing your health insurance, life insurance, auto insurance, and homeowner’s insurance policies all with the same provider.

Home versus land insurance. Don’t make the mistake of purchasing insurance for the land your home is on. Remember that your home is “property,” which can be damaged and destroyed, but your land will most likely stay the same regardless of the circumstances covered by a homeowner’s insurance policy. When you are getting homeowner’s insurance quotes, use the rebuilding cost of the property itself, not what you paid for the property (which includes the land).

As you can see, there are very simple things you can do to make sure you are paying as little as possible for your necessary homeowner’s insurance. If you take each of these examples into consideration, you could dramatically reduce your homeowner’s insurance obligation, without putting any unnecessary risk on your property’s security.

Home Insurance Cancellation Issues

In order to protect the assets in your home and the home itself, you will need to acquire a solid home insurance policy. How much coverage you acquire will depend on the specific type of policy you purchase and how much coverage you deem necessary. Of course, in order to maintain your insurance coverage, it is necessary to make payments on your premiums each and every month.

Everyone that has an insurance policy realizes this. However, not everyone will have the ability to make payments on the premiums. This can lead to a number of problems which is why it is best to take the right steps to ensure your policy is not canceled.

Cancellation Can Take Time
One thing to be well aware of would be the fact that the insurance provider is not going to cancel your policy if it is late by one day. Generally, there will be a thirty-day grace period in which payment must be mailed in before any cancellation action is taken. Issues can arise where payments are not made by the due date. Members can forget about a due date errantly or payments might end up lost in the mail. Regardless of the reason, there will usually be a grace period and the insurance provider will often mail out a reminder letter to those that have missed their payment.

A Grace Period
Again, 30 days is a common timeframe for any grace periods. Always contact your home insurance provider to be sure how much leeway you have before any cancellation period takes effect.

If A Cancellation Occurs
There might be dire scenarios where payment is not made within the required 30 day period. If you do not make a payment within the last day of the grading period then you will see your policy canceled. This likely does not mean you are finished with the provider. Rules and regulations will change depending upon which insurance company you are working with.

Usually, there will be a rule in place where you can reapply. An example of this is after cancellation you may request reinstatement. This could require paying a reinstatement review fee.

Also, the policy may have to return to underwriting and a new policy based on new information may be issued. This could come with a higher premium. However, you would likely not be barred from ever being insured by the company ever again.

Check the Rules

Once again; it is critical to state examples such as these are not blanket examples for every insurance company on the market. Different companies will have different policies. Always check with the service in question to determine what the specific rules may be.

Ultimately, insurance companies do need customers in order to stay in business which is why they will be more flexible than initially thought when it comes to making sure not to errantly eliminating those that may wish to stay covered. So, even when you miss your payments you still might be able to work things out.

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