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A blog for insurance that is dedicated to publishing the work of our guests, not the views of the webmaster. So if your into insurance enough to blog about it why not submit your content.
A blog for insurance that is dedicated to publishing the work of our guests, not the views of the webmaster. So if your into insurance enough to blog about it why not submit your content.
on October 24th, 2011
As the credit crunch hits harder and mortgage prices seem more and more out of reach for many workers it is little wonder that many would consider the purchase of home-insurance an unnecessary or unaffordable extravagance. Whilst the fees for such cover can indeed seem incendiary the money that house insurance can save in the long run far outstrips the costs that can be inflicted from not owning it. Once the benefits of owning a home-insurance-policy have been ascertained it is possible to see how this can save money in the long term.
Home Damages
There are many types of damages that can be inflicted upon an individual’s home and property that can be both emotionally and financially devastating. Whilst a tree falling on a house can represent possibly the biggest damage imaginable there are also a number of smaller problems which can be covered with an appropriate insurance-policy.
Major weather disturbances, such as storms, are one of the main perpetrators in relation to home damages. As well as heavy winds being able to tear siding from homes or slates from rooftops, major storms can also cause ice build-up which in turn could create water or structural damage if an immediate response is not taken. Similarly electrical fires can cause thousands of pounds worth of damages.
Homeowners insurance represents a protection against having to pay the full price to correct any of these damages or for repairs. For any incidents that are covered under a home-insurance-policy, all the proprietor would have to pay for would be the deductibles. As water, storm and fire damages are covered under most insurance policies, it is possible to save thousands by investing in one.
Theft and losses
When many individuals consider homeowners insurance-policy they tend to forget that such schemes also protect owners from theft of items as well as building damages. Due to this it is advisable to complete and submit an inventory of all the items stored within the home to the insurance agent that the policy was taken with. With this information in black and white it is much easier for the insurance company to provide fast and effective protection in case of theft.
There are, however, exceptions to homeowners insurance-policy and this usually covers more expensive items such as pieces of art or jewellery. Due to this it is of optimum importance to ask insurance agents exactly what items the coverage allows for and if additional coverage is needed for more expensive items. For all items covered, insurance policies will help compensate their value if they are stolen. This, oftentimes, can also include belongings taken on holidays too. If an airline loses your bags or suitcases it is possible to make a claim for compensation against this on a home-insurance-policy.
Package discounts
Whilst home-insurance will oftentimes not include a policy for car ownership it is not unusual that companies will offer significant discount if both policies are taken out simultaneously. These savings, when added to the amount that would otherwise be lost in the case of both theft and damages, can add up to a fair amount.
Author Bio
Kieron Casey is a BA (Hons) Journalism graduate who blogs regularly on a number of topics including financial advice, small business tips and home insurance.
on October 12th, 2011
Homeowners insurance is a term that refers to the insurance you have in place to protect your home and/or personal property, whether you rent or own the place where you live. The type of living arrangement you have will dictate the specific type of insurance you need to purchase, whether it be for a house, apartment, or condo. You’ll need insurance no matter what type of home you live in, and the following are some things you can do to keep costs low.
Get Quotes from Different Companies
Don’t think you have to purchase your homeowners insurance policy from the same company that writes your other insurance policies, like your car or life insurance. While you may get a discount for keeping everything together, there are also plenty of other companies out there who are willing to give you lower rates and the numbers might be nicer, even without the extra credits. Never be afraid to shop around.
Don’t Purchase Too Much
If you own your home, make sure you aren’t purchasing a limit that is too high for the replacement of the home you have. Many banks and mortgage companies will require you to purchase insurance in the amount of your loan, but this does nothing for you. Insurance will only pay for the replacement cost of the house itself. Your bank is lending you money for the house and the land. Make sure you are not paying for insurance for something you do not actually have.
Install a Security System
Smoke detectors are a given. As a matter of fact, you’ll get in trouble if you don’t have them. Security systems are considered above and beyond, and many insurance companies will give you a discount, usually ranging form 10-20%, for taking the extra steps to protect your belongings. Talk to your insurance carrier about the types of systems they recommend and give discounts for.
Check Your Credit Rating
Sadly, some insurance companies are allowed to check your credit score and use it as a determining factor when setting your insurance premium. Make sure you are running your credit report at least once a year, checking it for errors. Even a small mistake could result in a lower credit score and, ultimately, higher insurance premiums.
Raise Your Deductibles
The standard homeowners insurance deductible is around $500, but they can go as low as $250 and as high as $2,500. The lower your deductible, the more you will pay in premium as you are more likely to file a claim. The higher your deductible, the lower your rates. It is recommended that you keep enough money to cover your deductible in your savings account in case you do have a real emergency.
There are tons of things you can do to save money on your homeowners insurance premium. Talk to your local agent and find out if you current plan has any discounts you haven’t already taken advantage of. You may be surprised at the amount of extra money you can save.
About the Author: Deborah Blair is a full-time writer with 10 years experience in the insurance industry. She also enjoys writing about credit repair, bad credit loans, and money saving tips.