Understanding Insurance Policies

Do All You Can To Save On Your Homeowner's Insurance But Be Careful Not To Skimp On Coverage

4 November 2016

Samantha Reynolds

When you buy a home, and have a mortgage, the lender will require that you have homeowner's insurance to protect its investment if anything happens that would reduce the value of the property. If you should happen to buy the place outright, and not have a mortgage, you should still purchase an insurance policy to protect it. Whether you own the home completely, or are still paying off the mortgage, you can find ways to save on your insurance premiums. However, be sure that the savings will not mean you have less coverage. Here are a few things to look at and consider when purchasing the policy.

Types of Protection

Many standard insurance policies do not include coverage for things like floods, earthquakes, and other natural disasters. If you live in an area where such catastrophes occur, be sure to add them to your policy. However, you should also look over the coverage entirely. If it does offer protection against something that is not going to happen where you live, such as a hurricane when there is no ocean near, you can ask to have that removed for a lower price.

Deductible

When you want to add different types of protection, but are afraid the cost will not fit into your budget, increase the deductible. While it will cost you more out of pocket if there is ever a need to file a claim, the money you save on the monthly premiums can be significant. Having the additional coverage will also save you quite a sum of money when something goes wrong that you would have had to pay for if not for the extra protection.

Discounts

Be sure to ask the agent about all the different discounts that are available. It might save you money to purchase items such as:

• Home security equipment and subscription
• Safety features to include fencing, smoke alarms, and handrails
• Maintenance policies for the HVAC, plumbing, and roofing

You can also ask about a discount for multiple policies from the same company. Consider bundling your auto insurance and life insurance with your homeowner's policy.

Do not just purchase the policy offered to you by the agent without going over it, asking questions, and making sure every possible situation is covered. Once you are sure you have all the protection you need, discuss all the ways you may be able to lower the premium rates without changing the coverage. Your home is a big investment, take its protection seriously.

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