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Buying Homeowners Insurance
by Virgil Meine
http://www.fezinsurance.com
No one can argue against the importance of having your
home insured against the uncertainties like damage or
destruction that can happen. It is very important to
insure your home for the proper amount needed to rebuild
if it is completely destroyed. Partial insurance coverage
can create trouble when a major problem arises. Many
factors like, style and size of the home, type of
roof, number of rooms and bathrooms, local construction
costs, garages and other special features determine the
cost of rebuilding.
There are three ways to insure a home. Replacement cost
insurance will give the limited cost of replacing the
damaged of your home without deduction for depreciation.
Guaranteed replacement cost will pay the complete unlimited
cost of replacing your damaged home without a deduction for
depreciation. The good thing about guaranteed replacement
cost is that it will protect you from many hidden things
like sudden hike up in the cost of construction due to
building materials shortage or increase in labor charge.
Actual cash value will get an amount equal to the
replacement value of your damaged home minus depreciation
allowance.
There are some ways to save some money when buying
homeowners insurance. When you insure your home, you may
not want to include the value of the land. This will save
you on the premium, but needs to be carefully considered.
Another way to reduce the premium is to increase the
deductible. The Deductible is the amount of money you must
pay out of pocket on each claim before the insurance
company starts paying you. The larger the deductible, the
more money you can save.
You can save money in other ways too. You can ask about a
senior discount. Many insurance companies also offer a
discount if you carry other an auto, or other policy with
them. Shopping around for insurance is a must. Shop around
till you get the right company for all your needs. Ask for
recommendations from friends, family members, business
associates, banks and other relevant sources. But always buy
insurance from an established, reputable company.
You can also save money if you improve the safety and
security of your home. Installing alarms, fire
extinguishers and smoke or CO detectors etc, can get
discounts with many companies. Smoking and wood, or coal
fireplaces are often causes of fires. Most insurance
companies offer a lower premium if all the members of the
family don't smoke, or if you convert a fireplace to a gas
insert or remove it all together, because the risk of fire
is greatly reduced. Even the type of dog you own, can make
a difference in the premium.
Some companies give discount to homeowners who band
together to buy their insurance groups. So, you can ask
your friends or business partners to find out if they want
to take advantage of this opportunity. Many companies
reduce the premium if the person insures with them for a
long time. The loyalty discount means that the longer you
stay the more reduction you will get on premium. Lastly,
if you live in a flood, or other hazardous area, you may
want to be sure that you are covered for that kind of
damage.
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