Owning a home is a huge undertaking. It involves a big investment and a lot of responsibility. It is imperative that you protect your investment by obtaining homeowner’s insurance. This will help reimburse you in case your house sustains damage, you are a victim of theft, or someone visiting your property sustains an injury.
If you are building an addition to your home or considering a major renovation, check what effect this will have on your homeowner’s insurance rates. Wood-framed structures are considered to be a fire risk, for example, and will raise your insurance rates. Using cement, steel, or other fireproof materials will mean your addition costs less to insure.
One way to reduce the cost of your homeowner’s insurance premiums is to pay off your mortgage. If you can manage it, your insurance company is likely to give you a break for not owing any money on your home. If you have an outright claim to your home, the insurance company will think that you will not damage it.
To save money when buying homeowners insurance, consider putting an alarm system in. Most major underwriters will give a discount for a home that has a monitored alarm installed. Many times the discount you get will add up to more than what you pay for the monthly monitoring cost.
Many home owners have a hard time keeping their premiums down. You can keep your premiums down by increasing your deductible. Increasing your deductible will result in smaller premiums. However, if you go this route, check that you have sufficient money in the bank to cover small repairs that you will have to pay out of pocket.
No homeowner should forgo purchasing homeowner’s insurance. Once the deductible is met, homeowner’s insurance protects the policy holder from damage that the house may sustain from fire and other accidents, pays for loss from theft, and pays for medical treatment of any visitor who is injured on the property. This makes homeowner’s insurance invaluable to all homeowners.