Low Cost Home Insurance Buying Tips
Basics Of Buying Low Cost Home Insurance
If you own a home you need insurance and normally your home is your most valued asset and you want to keep it protected. The purpose of insurance is to cover the cost of losses on the structure of the home and it will also cover the contents of the home. I remember when I bought my first home many years ago the thought of all the responsibilities and cost that came along with it was very intimidating including buying home insurance. I know I was looking to save money by purchasing low cost home insurance. It doesn't have to be a scary process as long as you know some of the facts.
What Are Some Things Covered Under Home Insurance Coverage?
- Structure Damage - If the structure of your home is damaged, insurance protects your investment.
- Property - You spend a lot of money on furniture, decor and accessories for your home. Property home insurance covers the cost of replacement although policies normally have limits to the amount that is covered.
- Liability - Liabilty insurance covers your assets if someone tries to sue you.
- Medical Cost Of Injuries - Insurance will cover medical costs of people that are injured while on your property. Once gain, limits are established as to how much the insurance company will pay.
- Catastrophe - Standard home insurance usually covers catastrophes such as tornadoes, wind damage, hail storms, or damage from smoke, fire or ice. You can buy different levels of additional insurance for various other catastrophes such as earthquakes, floods, and hurricanes.
Home insurance known as replacement coverage is home insurance that covers the actually cost to replace the insured item at today's cost. For example if you bought your home 30 years ago at a cost of $70,000, insurance may have to pay $200,000 at today's cost to replace the home.
Seven Ways To Save When Buying Low Cost Home Insurance
If you are looking to save money by buying low cost home insurance there are various things to take advantage of when conducting your search.
1. First of all you should research your options. When trying to save money on anything and most definitely insurance, never jump into the first thing you find. In the case of low cost home insurance the best way to go about it is to get several different quotes. The internet is loaded with opportunities to save money on insurance so take advantage of it. You can also call around to insurance companies to get different prices.
2. Choose a higher deductible on your policy. The deductible represents the money that you pay out of your pocket towards the damage. For example if a tree falls on your roof and causes $4000 worth of damage but you have a $1000 deductible then the insurance would pay $3000 and you would pay $1000. The higher the deductible means lower insurance cost.
3. Sometimes insurance value is based on the appraised value of your home. Be sure that you do not include the value of the land in your policy. Only insure the part of the home that includes the house so your overall costs will be lower.
4. Try to keep your insurance for all of your property whether its a home, car, jewelry within the same company. You will find that companies give discounts when you take care of all of your insurance needs in one place.
5. Replacement cost is a big item when considering low cost home insurance. The higher replacement value you insure for than the higher the cost of insurance will be. However you do want to keep in mind that you want your insurance to be able to replace whatever was damaged.
6. Insurance companies give discount for such things as have smoke alarms installed, using dead bolts or installing a security system. These items make your home safer so it is less likely to have an insurance claim.
7. A good credit score will tend to give you a better price on your insurance quote. Try to lower your credit score so you will see a reflected discount in your insurance premium.
When buying low cost home insurance you have to be aware of the policy options and limits. It is very important that your coverage is able to provide you with the protection you need if you have to make a claim. You don't want to same money on the policy and then lose money on the claim. Either ready your policy or have your agent fully explain everything that is covered on your home.