Are you thinking about buying a new home? Remember, when buying any home, homeowner’s insurance is a necessity, not an option. In most cases, proof of insurance is required to qualify for a mortgage. Based on where you live, policies and premiums will vary, especially in a high-risk area like close to major waterways or near known earthquake faults.
Policy Discounts: Good news, if you use the same insurance carrier for your auto insurance, chances are there is a multi-policy discount for adding your home policy. It’s easy to obtain a quote from an insurance provider; be sure to ask about multi-policy discounts. You may end up saving money on your insurance premiums if one company handles all your insurance needs.
Home Security: If you have a security alarm that is monitored by a central station, or that is tied directly to a local police station, you can lower your annual premiums by about 5%. Smoke detectors have become a standard in most modern homes, but installing them in older homes can save you up to 10% on annual premiums. It’s a small investment that can save you money and possibly your life!
Deductibles: Insurance can be expensive, especially if you live in high risk areas. Consider raising your insurance deductible, which in return will lower your annal premium. However, for smaller issues like a broken window or a leaky pipe, the homeowner would absorb the costs rather than submitting a claim to the insurance company.
Policy Review: On a regular basis, you should review your homeowners policy to reveal any changes made that can decrease your premium, like a newly installed security system. Also, changes in your neighborhood can make a positive revision to your homeowners policy. For example, if you have a fire hydrant within 100 ft. of your home or a fire station in close proximity, you may qualify for additional discounts.
Homeowners’ insurance is a necessity. Do you know what’s in your homeowners policy? There are plenty of ways to save money on insurance, but don’t skimp on the important stuff. Make sure you know the difference. If you have questions or want additional tips on your homeowner’s insurance for a new or existing home, contact George Papakostas for advice.