Made an offer on your dream house? Now you will have so many things to do, and it’s easy to overlook one thing or another. Don’t forget your insurance binder, and start looking for a homeowner policy as soon as your purchase offer is accepted. Here are some tips about purchasing homeowner insurance to help you save your time and money.
∙ Shop around in advance. Shopping for homeowner insurance is one of those boring and tiresome tasks that are part of buying a home. Do what you can ahead of time to get through obtaining your home insurance faster, and you will enjoy a more cost-efficient experience. Check online insurance quotes services and get price quotes.
∙ Buy your home, car and health insurance policies from the same insurer. Many companies that sell homeowners, car and health insurance coverage will take up to 10 percent off your premium if you buy two or more policies from them.
∙ Increase your homeowner’s insurance deductible. The insurance deductible is the dollar amount of losses that you pay before the insurance company starts paying. It’s recommended that you should have a deductible of at least $250 – $500. It’s a good strategy to raise your deductible to $1,000 (if you can afford it), and your home insurance will cost you 25% less.
∙ Buy and install home security systems. You can usually get discounts of at least 5% on your home insurance by installing a smoke detector, burglar alarm or dead-bolt locks.
∙ Upgrade your home. Reinforce your roof, add storm shutters, and modernize plumbing and heating systems to lower your insurance rates.
As a home owner, you should understand that without home insurance, you’ll be responsible for protecting your property and possessions. If your house burns down or is destroyed by a tornado, you’ll need to rebuild it and replace all your damaged possessions with only the funds you have. Or if someone is injured on your property, you will be responsible for medical bills, and they may sue you for injuries and damages they sustain. And finally, most mortgage companies require you to have home insurance before you buy a house.