Of all the assets we procure, home remains our dearest. However, like any other beloved, we need to take care of its safety. That is where the home insurance policies come. The amount of premium dramatically differs depending on the location and age of the house; however, it might cost us a whopping amount sometimes. This cost is something we all need to bear despite its amount being a little hiked. Thus, here are a few ways in which the price can be lowered.
Before we start our journey of safeguarding our home from impending dangers, it is imperative for us to know the types of coverage and identify our ideal coverage. They are mainly two types:
- Dwelling coverage: the physical structure of the house is protected.
- Loss of use coverage: it is a small amount of coverage, which includes the costs of living outside when the house is getting renovated or repaired from damages listed under man-made and natural disasters.
- Personal property coverage: the personal belongings inside our house, including furniture, electronics, etc. are taken care of by the policy.
Once the type of coverage has been decided upon, we need to keep certain things in mind:
Do your Research in Advance
While buying insurance policies is almost compulsory, you don’t owe anything to a particular insurer. Much before placing trust in anyone, you should go through online portals and get the homeowners insurance quotes from at least three separate insurers. Many websites are there to help you with that. Besides, availing discounts via employers, credit unions, etc. can hand you a very lucrative offer. Amongst all these ways, the most accurate way could probably be visiting your state insurance commissioner. He has a “complaint index,” which can come in handy to you for understanding the customer service of various insurers.
Make Searching for a Discount your Hobby
There is a wide range of discounts out there, and as consumers, we are responsible if we explore them thoroughly. Discounts can be levied on a variety of things starting from premiums to even extending the policy time.
The most significant discounts go to the new construction owners, but that doesn’t mean they don’t have anything for you. Look out for every opportunity to get a discount and discuss the same with your agent. In case you’ve redone your roof or windows, or installed new devices, go and get your additional money from the company.
Explore the Market a Bit More
Once the initial research has helped you understand which coverage suits you best, and you have gotten your insurance company, don’t think your work is over. While comparing, don’t just go through the price aspect, shop around a few other insurers, and thoroughly check what they have to offer instead of the money and enquire your current insurer about it.
What About Your Deductibles?
Well, deductibles go a long way in deciding your premium account and should never be ignored. The higher the price of a deductible, the lower your premium amount is. While choosing the premium amount, the cost of repairs should also be factored in, along with all other issues that will need you to file a claim later. Choosing a deductible higher than you can afford is counterproductive, and it’s about time you knew it.
Communication is Pivotal
The insurers have done your job easy, and we don’t deny that. However, there is a lot more to it than what your agent makes you understand. Reading through the renewal documents handed over to customers has never been our favorite work, has it? The declaration page has a summary of the insurance plan, and it’s advisable to read through that if the whole document becomes too cumbersome to go through. Exclusions page has the list of all other issues which aren’t covered, and is the most important thing to note. After going through, talk with your insurer and check if they are providing you with all the benefits listed in the documents.
Are you Covered for Flood Damages?
Thousands of people suffer from flood damages almost every year, and surprisingly, most of their houses aren’t in the flood-prone regions. Despite its increasing occurrence, flood coverage isn’t included in the prototype insurance plans. Getting flood insurance in an area with lower risk costs much less than the flood-prone areas. The National Flood Insurance Program or even some private insurers provide the flood insurance separately, and it’s definitely worth your attention.