You probably know it's important to have homeowner's insurance to protect your dwelling and belongings. But are you really taking advantage of all the benefits available to you? Below are ten ways you can get the most your homeowner's insurance has to offer.
1. Understand Your Policy
Take the time to understand your policy.
Read the Fine Print
Make sure you know what your policy will and will not cover, and carefully check any exclusions, limitations on coverage or deductibles.
Know Your Coverage Types
Dwelling coverage, found nearly universally in homeowner's insurance policies, covers the cost of repairing or replacing the structure of your home when covered losses occur, such as a fire. Everyone believes they should have adequate and affordable homeowner's insurance, but few compare policies to know if they do. Another common insurance package covers personal property, liability and additional living expenses. Do you know the specifics regarding these coverage types for your own home?
2. Assess Your Coverage Needs
Be sure to check your policy for appropriate coverage.
Regularly Review Your Policy
Review your policy every year, or whenever you make structural changes to the house or buy expensive items, to ensure the current value of your home and your belongings is covered.
Consider Replacement Cost vs. Actual Cash Value
Replacement cost provides the money for the replacement of an item at today’s price, without depreciation, while actual cash value takes the initial replacement cost and subtracts the amount it has depreciated over time. Replacement cost policies cost more to purchase, but better protect the policyholder.
3. Document Your Belongings
Keep a home inventory up to date in terms of photos, descriptions, and receipts for your possessions. You might even record a short video while walking through your home. This will keep you from having to scramble to recreate this list after a disaster happens.
4. Take Preventive Measures
Fit your home with alarms – smoke alarms, burglar alarms, and deadbolt locks. Your insurance agent may get you a discount for them.
5. Maximize Discounts
Here are two popular discounts you may enjoy.
Bundle Policies
Consider purchasing your homeowner's insurance and auto insurance from the same company to get multi-policy discounts.
Loyalty Discounts
Some insurers offer discounts for those who have been with them for a long period of time. Try calling your insurer to see if you qualify.
6. Raise Your Deductible
You may choose a higher deductible to lower your premium. Make sure you have a rainy-day fund sufficient to cover the deductible amount should you have a claim.
7. Shop Around
Shop around for coverage and rates – and don’t assume that the first insurer you talk with has the proper option. Use companies with good customer reputations for service and claims. Read reviews and ask other people for their recommendations.
8. File Claims Wisely
Make sure you familiarize yourself with how to file a claim, whom to call, what documents are needed and when claims may be filed before you need to do so. Avoid filing claims for small amounts, which might cause your insurer to increase your premiums or even cancel your policy.
9. Keep Records of Improvements
Keep track of home improvements, upgrades and repairs as you make them. Certain improvements, such as a new roof or upgraded electrical system, make your home safer and could lower your premium.
10. Seek Professional Advice
Talk to an agent or broker to make sure you have the right type of coverage. They can help you get a policy that’s right for you and pare out anything that isn’t.
Important Disclosures:
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
This article was prepared by WriterAccess.
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