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For most people their home is the biggest financial asset they
own, and it should be well protected through an appropriate insurance
policy.
Likewise, insurance on your home is a major requirement if you
are in the process of paying off a home loan. Homeowner's
insurance is required, but the insurance policy covering your
home should match your particular needs.
After careful consideration, you may discover that making a few
simple changes to your policy may have the effect of lowering
your monthly premium rates.
Raising homeowner insurance deductible.
The deductible is the amount you have to pay, before the insurance
company pays its share. Home owner insurance is more expensive
when the deductible is low, so raising it will always lower the
premiums. However, the deductible should never be more than
you can afford to pay. It is important to remember that most home
insurance policies will have different deductibles for specific
claims. Wind and hail storms, earthquakes, floods and other natural
disasters are separate parts of your policy. It will be examined
for the likelihood of these disasters, and then matched with the
appropriate deductible.
Getting multi insurance discounts.
Buying home owner insurance and auto insurance from
the same company always saves money. Some insurers even
offer deeper discounts, if you get other policies like umbrella
or life insurance with them. If you already have these products,
(or need them in the near future), consider switching them to
one company. Don’t overlook other discounts you might qualify
for like membership in professional organizations or being retired.
Many insurance companies will greatly reward you if you stay with
them for a long time, keeping all your policies with them.
The cost of rebuilding your home.
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It is important to remember that the cost of rebuilding your
home is less than what you paid for it (or what you owe to the
mortgage company). This is the insurance amount you need.
Making your home resistant to natural disasters and more secure.
An insurance agent can detail all the things you can do to make
your home more resistant to natural disasters, which will lower
insurance premiums. The following can not only lower your home
owner insurance rate, but will also add value to the property,
and make it nicer to live in:
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- reinforcing roofs with stronger roofing materials.
- modernizing heating, plumbing and electrical systems, which
lowers the likelihood of fire and water damage.
- earthquake retrofitting.
- installing insurance approved fire and burglar alarms.
- installing deadbolt locks and fire detectors.
Good credit history will keep insurance premiums low.
Try to maintain a good
credit history, since more and more insurance companies are
discovering a direct correlation between a credit
score and the number of claims filed.
See also: home
refinancing, comparing
home loans, title insurance
Related topics: homeowner
insurance guide
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