Becoming a homeowner can be a great way to feel more settled, and to start down a path to financial security and putting down roots in a place you love. Because of that, you really want to protect your investment. Your homeowners insurance is the best way to do that. It ensures that you have some protection from things like fire and theft, and also from lawsuits if someone becomes injured on your property. There are a lot of ways in which your homeowners insurance can actually save you money. If you want to be protected and save big, it’s a good idea to talk with your insurance agent about what your homeowners insurance can do for you.
1). How much is your deductible?
Depending on the type of homeowners policy you have and what you specifically want for coverage, your deductible can vary. If you have additional coverage, such as what would be used for hurricanes, flooding, or earthquakes, the deductibles for those options are often different, as well. However, the amount you would pay for a deductible, plus your yearly premiums to keep your insurance intact, are generally going to be much lower than what you would pay out of pocket for damage if you didn’t have proper coverage. Your homeowners insurance will save you a lot of money if you have a fire at your home, for example, or if you have a break-in where things are stolen. Coverage is important to making sure you’re financially sound and protected in your home.
2). What if someone gets hurt?
By purchasing a house, you also gain some liability. If someone gets hurt on your property, they can sue you in an effort to get you to pay for their injuries. Naturally, that could send you right into bankruptcy if they sue and win, and you would be stuck with serious and significant bills, or a lien on your home, taxes, or property. When you have a homeowners insurance policy, though, you have coverage if a person falls or is otherwise injured in or around your home. You could still be sued, but the insurance would pay the settlement. That would save you a great deal of money, and could also give you a lot more peace of mind and help you sleep better at night.
3). Can savings opportunities mean better security?
You want to make sure you protect the investment you have in your home, and reduce your costs at the same time. One of the ways you can do that is through a security system, which will help you save money on your homeowners insurance. You can get a small discount with some companies and a bigger discount with others, when you decide to put in a security system for your home. The savings opportunities extend beyond just a homeowners insurance discount, though, as being protected by a security system can help keep criminals away. That reduces the risk that you’ll be the victim of crime, and also means that you may have fewer reasons to make a claim on your homeowners insurance.
Too many claims can drive up insurance rates, and in some cases your insurance company could even drop you. Since you don’t want that to happen, because it can be much more expensive to get insurance after you’ve made a number of claims, it’s generally a better choice to protect your home from the beginning. With the right security system and a good insurance policy to go with it, you’ll have more opportunity to stay protected and save money. That’s a great combination, and one that can help your financial future for a long time to come. Then you can just enjoy everything that your house has to offer, instead of being worried about your safety or the price you’re paying for insurance.
4). Did you remember to bundle?
Buying a home means you may now have more than one thing to insure. If you already have a car, you can bundle your car and your home through the same insurance company. That’s a good way to focus on getting a discount, and also make sure you have the proper protection on all of your important items. The multi-line discount, which is what many insurers call the savings you get when you insure a home and a car with them, can add up to quite a lot of money over time. It’s usually a percentage savings, not a specific dollar amount, so you’ll be saving the same percentage on your insurance even if you raise or lower your coverage. Renters insurance doesn’t give you as much of a discount as owning a home, so you can save more on insurance when you buy a house.
5). Should you do those upgrades?
Upgrades to your home can really help the value, and can also make you feel happier in your new house. They can be important for your homeowners insurance, too. When you make changes to your home that improve the quality, safety, or functionality, it’s a good idea to let your insurance company know. That way, they can give you any discounts you’ve earned. Energy saving measures and options that keep you safer (like upgraded wiring, for example), can mean lower insurance costs. If your insurance company determines that upgraded wiring translates to a lower risk of a house fire, you could see your premiums drop. It’s a great way to have a better, safer, more comfortable house, and spend less to insure it, as well.
