As the owner of a new home you want to be responsible, and that means making sure you’re protected in the event something unexpected happens. Carrying adequate insurance is a must, but you need to do it on a budget. There are some things you can do to ensure you’re covered without breaking the bank. Following are a few insurance tips for new homeowners.
Get the Best Price You Can
As a responsible homeowner, you’re always on the lookout for a good deal. Although carrying insurance is important, you don’t want to spend any more on it than is absolutely necessary. In order to ensure you’re getting the best deal you can on insurance it’s essential to compare the rates of competing insurance companies. You need to call a number of insurance companies and get as many home insurance quotes as possible. Before agreeing to any policy you need to do your homework and become aware of all the options that are available. Insurance companies are competitive. A good insurance agent will work with you to ensure you get the best possible rates. Be sure and ask about discounts. Special mortgage rates are available for those who qualify.
One way to get good insurance rates is to combine your policies. By bundling home, life, health, and auto insurance with the same company, you can usually get very attractive rates. These multi-policy discounts are much cheaper than individual policies.
Take Advantage of Discounts
It would be a mistake to accept the first quote you receive from an insurance agent. Instead, it would be advisable to ask if you may be eligible for any discounts. Most homeowner’s policies will reflect a discounted rate if you have certain safety devices installed in your home. If you have smoke detectors or deadbolt locks, you may be able to get a discounted rate. If you’ve installed a fire alarm, especially if it rings directly into a manned firehouse, you could receive a significant discount. The installation of a security system could also qualify you for discounts, particularly if it is directly connected to a police station or home security business.
High Deductible Policies
There is one fact that is common throughout the insurance industry; the higher the deductible, the lower the premiums. By making sure your home is as safe as you can possibly make it you’ve opened the door to being able to live with higher deductibles. Because the possibility of something going wrong is lessened by your safety measures, you can accept a high deductible policy with some measure of confidence. Keep in mind these safety measures are no guarantee that something won’t happen, only that the probability is less. It would also be a good idea to take the money you save on monthly premiums and put it into a savings account designated for emergencies. It will collect interest until you actually need it…provided you don’t dip into it for non-emergencies.
Upgrade Your Property
Another way to make sure you get the best possible home insurance quotes when you’re shopping for homeowner’s insurance is to improve your home by installing a new roof or putting storm-proof shutters on the windows. If your electrical system is out of date, redoing the wiring could also save on insurance rates. In the same way, by upgrading your plumbing system you could avoid expensive repairs at some point in the future, and that could result in savings on your homeowner’s policy. For every home improvement you make, your insurance premiums should drop accordingly.
Seek Out a Reliable Insurance Company
Although you’re just starting out as a homeowner, it would be a good idea to take a long-term view when deciding on an insurance company. Most insurers will reward customers who stay with them for an extended period of time. Find a company and agent that you’re comfortable with, and when it’s time to talk about renewing your policy, or taking out a different sort of policy, make sure they know you’re willing to stick with them if they’re good to you. Your continuing business will be appreciated.
Guest post from Bailey Harris. Bailey enjoys writing about real estate, insurance, finance, and related topics.
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