Homeowners Insurance Part 2

Step-by-Step Guidelines to Home Owners Insurance

Home owners insurance is a requirement by the mortgage companies.
Unless you paid cash for your home you will have to have it.
The reason of course is to cover the mortgage company's risk if
the house were to burn or collapse or get sucked up into a funnel cloud.


So What Kind of Homeowners Insurance Do You Need

Typical home owners insurance policies are divided into 2 parts:

I: Home Insurance Property Protection

II: Home Insurance Liability Protection


Property protection covers damages sustained by your home usually because of fire or storm damage.

Liability protection covers such things as injuries or accidents that may occur on your property. If the little old neighbor lady comes over for tea and falls down your stairs you'll be glad you're covered.

Remember that there is a deductible when filing a home insurance claim unless noted on the policy. You can choose a higher deductible to save money on your premiums.

When contacting insurance companies about an insurance quote, you will save money by knowing your discounts. Combo insurance policies, home security systems, smoke alarms and dead bolt locks are some options to consider which can get you a less expensive home owners insurance quote.

On a standard homeowners insurance policy, coverage limits for jewelry, furs, watches, and related items is only $1,000 combined. If you want additional coverage you will have to itemize your valuables and submit the list to the insurance company for review.


Here is a list of considerations to save money on your homeowners insurance.


Home/Auto Discount

Insuring your car and home with the same company will get you a package discount. Insurance companies will be happy to show you what kind of savings are available with combo packages.

Deductibles

Raising your deductible will result in considerable savings. Although it will cost you more upfront if a claim is required, it saves in the long run. Stay claim free and you come out ahead.

Home Security Systems

Security systems can prevent losses and make your house less of an insurance risk. Any type of security system will help give you a discount, but the systems that feed directly to local police and fire departments are most likely going to get you the largest discount.

Dead Bolt Locks

Dead bolt locks installed will save you money on your premium.
Make sure all of your doors have them installed because the discount only applies if there are dead bolt locks on every door.

Escrow

More than likely you will want your premiums folded into your monthly
mortgage payments, as well as any property taxes.
Your mortgage provider will do this for you. Some
providers charge a fee, some don't. You can have all this taken care of
just by notifying them that you have shopped around and wish to
make a change; they will need all the details so have the info handy.