Purchasing a home, condo, or renting a new apartment is an exciting decision that brings a weight of responsibility with it as well. It’s likely that this purchase is one of the largest investments made in a person’s life. Homeowner’s insurance exists to ensure that this investment is secure for the long term.
Two-Thirds of Americans Are Underinsured
According to Jim Feinman, an insurance expert at Rutgers University Law, “Two-thirds of American homes are significantly underinsured.” Due to the excitement surrounding the event of getting a new home, many underestimate the importance of finding a reliable homeowner’s insurance policy. And finding one at a good price? That takes a bit more effort-but the value of it cannot be overemphasized.
Understanding Homeowner’s Insurance
It is important to have a depth of understanding in regard to different policies and what financial coverage they provide. Overall, homeowner’s insurance provides the financial coverage to replace a home or repair damage due to perils such as fires, water flooding, smoke damage, theft, vandalism, storms, or other events causing loss to the home’s overall value.
In general, homeowner’s insurance provides coverage for personal property, dwelling, additional living expenses, personal liability, and medical payments. Though homeowner’s insurance covers a variety of essential needs for any perils that could occur, there are some exceptions that are not covered in most policies. These are worth noting to make sure there are no surprises if an unexpected disaster were to occur.
Don’t Be Cheap. It’ll Cost You.
There is a clear path toward saving money on homeowner’s insurance. But be cautious of only thinking of saving in the short-term, as this could result in making cheap decisions up-front that could cost you and your home immensely in the future. An essential tip to follow to avoid being underinsured is to spend the necessary money on a policy that fits your needs if the worst-case scenario were to happen. The last thing you want is to realize after a disaster has happened is that you chose a bare-bones policy that didn’t cover the cost of the damages to your home and belongings, leaving you in a financial disaster.
How to Save in the Short Term
When you’ve decided which policy provides the coverage for you, let’s look at the tips and tricks that will save you money in the short term.
–Increasing your deductible. According to the Insurance Information Institute, increasing your deductible from $500 to $1,000 could lower your premium by 25%.
–Comparing policies is one of the most reliable ways to save your money. It is recommended that homeowners look into at least 3-5 policies to compare prices as they can be quite competitive.
–Bundling policies usually provides a great discount as your insurance provider will be happy to be covering not only your homeowner’s insurance but your car or other assets as well.
-Making your home weather-proof helps your lenders to know that your home will have less damage if a disaster were to occur, lowering the amount of coverage needed for your home.
–Adding smoke detectors is a wise choice for not only you and your family but for the safety of your home as it reduces the chance of a fire destroying it. Therefore, this could reduce your premium as the lender’s money won’t be spent on avoidable fire damage.
–Being a loyal customer for 5-10 years could provide you with a great discount.
-Adding home security such as deadbolt locks could provide a 5% discount on your premium.
–Keeping the home repaired and safe to avoid injury in and around the house reduces the risk lenders are taking on you when providing you with homeowner’s insurance.
–Asking about discounts may seem like an obvious move, but you’ll likely find out about great discounts when you take the time to ask about them.
Top 5 Insurance Companies
According to U.S. News, here are the 5 top insurance companies you’ll want to check out as you consider different policies: Lemonade, USAA, Amica, Allstate, and Statefarm.
Covered When It Matters Most
With these tricks in your pocket, you’ll be set up to save on your homeowner’s insurance not only in the short term but in the long term-when it matters the most.
[offerpromo]
