Buying home insurance feels like a necessary evil sometimes, but when an emergency happens, you’ll be thankful you have it. Home insurance protects your biggest, most valuable asset. You’ve worked hard for your home and put time and effort into it, so protecting it with insurance is essential. If you want to make sure you get the best insurance for your money, follow these tips.
Know how much insurance you need
The first thing you need to know is how much insurance you’ll need. Find out the actual value of your home because if it’s destroyed or damaged, you need to know what it will cost to replace the entire structure or the damaged portion of the structure. A home builder or home appraisal company can give you the truest value. This is not a time for guesswork, as you cannot properly figure out your home’s value by yourself.
Learn the risk factors your premium will be based on
It’s important that you realize that your premium is based on risk. The higher risk that something will happen to your house, the higher the premium will be. Factors like the crime rate in your neighborhood, living habits, where on the block your home is located, how close you are to highways and trees around your home all create potential risks.
Use things that can save you money on your premium
There are many risk factors that can drive up the cost of your home insurance premium, but there ways you can save money on your policy as well. Things that earn a discount include:
- Home burglary alarm system
- Dead bolt locks
- Fire alarms and sprinklers
- Updated heating systems
- Updated wiring and electrical system for the home
- A home near a fire hydrant or fire department
- A home located near a police department
- A home located near a police department
- Well-structured and maintained stairs, sidewalks, driveways and entrances
Anything that makes your house safer and less likely to catch fire or injure someone else will give you a discount on your premium.
Take inventory of possessions
Your homeowners insurance covers your home’s structure and dwelling, along with your possessions. You could have up to $20,000 worth of personal possessions in your home at any given time, so make a list of all your belongings and value them based on receipts and purchase dates. This way if you ever need it, you’ll have a concrete list of your valuable items.
Know what you need coverage for
Many people don’t understand their coverage. It’s crucial that you know what you’re covered for so that you’re prepared when you have to file a claim. You will probably not be covered for floods and earthquakes, so you’ll have to decide whether or not to get extra insurance. Talk to an expert from Insurance Quotes Salt Lake if you are confused about your policy. They can look over it and explain it to you.
