Wednesday, September 16, 2009

Home Insurance

As entrepreneurs, we tend to spend so much time focused on our business that anything not directly related to that gets shoved onto the backburners. But, if paying a little more attention to something on the home front can save us money, doesn’t that help our business as well? This article provides a number of different ways that you can use to save on the cost of your home insurance. It’s expensive, but we all need it, so how can we make the most of our money? Read on.

First of all, it’s important not to simply buy the first package you hear about. Your Uncle Marty who has been working at that insurance company down the road for fifteen years might not actually be offering you the best rate quotes available. Shop around. Check with a number of different companies to see what’s available. Ask your family and friends what policy they have and if they are satisfied with it. Also, check with your auto insurance company; often, companies will offer discounts if you buy more than one package with them.

Second, as most experts will advise you, try to raise your deductible as much as possible. This is the amount of money you can afford to pay yourself toward any losses before your insurance company is forced to step in. While house deductibles typically start at $250, increasing it to upwards of around $5,000 can save you more than 35 percent on your premiums. But, make sure you only go as high as you can afford.

Third, it’s important to keep home insurance in the front of your mind at all times. Even when you first go to buy a house, you need to be thinking about how much coverage it will require. Is the house newer and therefore in better condition? Is it on the coast, which could result in floods or wind damage? These are all the sorts of things you need to keep in mind when buying a house.

Finally, try and look for ways to save wherever you can find them. Will your insurance company offer a discount if you install a sophisticated home security system? Does your company or any associations you may belong to have any deals with insurance companies for group discounts? Will your premiums go down the longer you’ve been with the company? Are discounts offered for senior citizens? If you think there may be a way to save, it never hurts to ask just in case.

Your coverage policy is something you should evaluate on a yearly basis. The protection you had last year might be too much – or not enough – for what you need today. That additional floor you built last year, or that valuable golden statue you recently sold from in the hallway, will no doubt change the amount of coverage you need.

Buying the right home insurance can be a tricky process. One final simple tip: stop smoking. More than 23,000 house fires every year are caused by smoking accidents, and insurance companies know it.

1 comment:

  1. Buying a home insurance policy is really difficult. There are so many things that need to be considered when planning for this policy. This article has helped me a lot but I do need some more assistance on this insurance scheme.
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