Although there are many insurance companies competing for the home owner's business, it is your job ...

1. Protecting Your Biggest Investment - Tips For Buying
Homeowners Insurance
Although there are many insurance companies competing for the home owner's business, it is your
job to find the best company that offers the coverage you are looking for. You absolutely must have
protection for your home and its contents, but remember that not all policies are created equally.
Use these tips to figure out what to look for in home insurance.
The importance of renters insurance can easily be overlooked and this is a mistake. Your landlord's
insurance policy only covers the structure your landlord owns. You have to have your own contents
policy in place.
It's important to know if your insurance allows for living expenses elsewhere. A lot of the time you
will find that a policy covers a relocation if something happens to the home you live in. Make sure
that you keep all of your receipts, because this is your proof to give the insurance company so they
will cover the claim.
It may be smart to have flood insurance even when living away from bodies of water. Approximately
one fourth of federal disaster claims due to flooding occur in homes outside high-risk areas. You
might also get a big discount on insurance should you reside in a low-to-medium risk neighborhood.
Get a decent alarm system to lower your homeowner's insurance. You will have a lower risk of
break-ins. The insurer will see your home as being far less risky to insure and will lower your policy
price. Do not forget to send proof that your house is secure to your insurance company.
Many things can cause damage to your house. Fire just happens to be one of them. Therefore,
buying fire insurance is important because it will protect your home from fire that is caused by
arson, wildfires, cars, storms, earthquakes, and even human error. Read the policy and ask any
questions to be certain your policy protects you from these things.
"Guaranteed replacement value" is a very important term to look for in your homeowner's insurance
policy. This means that your insurance will pay for a new home roughly equivalent to one that is lost,
instead of an inferior substitute, like a mobile home. This insurance model will cover the entire cost
associated with replacing anything that may have been lost.
When you add any structures onto your home, the materials used to make the addition can impact
your homeowner's insurance rates. A simple choice of concrete as a building material, for example,
can lower premiums with certain insurance companies in regions throughout the country. Because
these stronger materials can withstand the ravages of water, freezing temperatures and aging, it
will cost less to cover them.
Earthquake insurance is recommended for people who reside in an earthquake prone area. Most
homeowner's insurance does not cover earthquakes, so you will need to purchase an additional
policy.
Get your home updated with a new security system. This will reduce the cost of your premium
overall. Your family will have increased protection and you will realize real savings and also boost
your home's resale value.

2. When you buy a home, one mortgage payment option you can choose is to have one-twelfth of the
annual cost for homeowner's insurance placed into an escrow account and paid by your mortgage
company to your insurance company. Then you will have the money on hand to pay for your
insurance annually without having to struggle.
If you are buying a home, make sure your mortgage payments are set for one-twelfth of the yearly
homeowner's insurance premium to be included every month and put into an escrow account. This
will help you avoid the hassle of paying the premium every month on your own.
If you do not smoke, your insurer may give you a discount on your homeowner's policy. But, you
cannot allow any smoking in your home. A lot of insurance companies can provide this discount, but
you'll need to ask for it. The discount can be from 5% to up to 15%.
Take the amount of coverage into consideration before buying insurance. There is no room for
cheap, as you want to make sure your valuables will be replaced. You will be better protected with a
higher cost plan. There's no other way around it.
Raising your deductible is a simple way to lower your monthly payments for homeowner's insurance.
If you decide to do this, you will have to pay for small repairs yourself. But if you can afford it, that
might be the right option for you.
Keep an eye open for companies that practice user-friendly approaches. Try to find a company that
will process your claims without a hassle. There are reports available (through Consumer Reports
and other organizations) that provide feedback on how happy customers are with their insurance
provider.
If you have valuables, ensure they are covered in your policy. Standard home insurance polices
cover the structure of your home and your personal belongings, but they may not cover high-value
items like jewelry, paintings or coin collections. If the personal items inside of your home exceed
your insurance policy's coverage limits, you'll need to purchase extra coverage.
Many insurance companies just want you to spend money. This is how insurance providers make
their money. So be sure that you're using these tips to save on your bottom line without having to
give up on protection features which will come in handy in case your home is damaged.