Purchasing a home is a thrilling decision, but it also comes with a lot of responsibility. Not only will you have to worry about the mortgage payments, but you’ll also have to deal with insurance. Getting homeowners insurance is mandatory in most states and covers your home in case something happens to it. Here’s a peek at how you can get cheap homeowners insurance to protect your property and your wallet.
Get Multiple Quotes
Don’t start by calling your insurance provider. Start by getting quotes online or speaking with independent insurance agents. When you do this, it will help give you an idea of what insurance companies are in your region and the price range you can expect to pay.
Increase Your Deductible
Your insurance deductible is the amount of money you’d have to pay yourself if you needed to file an insurance claim. For example, say you had a $500 deductible, and your furnace broke while you were on vacation, leaving you with $2,000 in repairs. Under that scenario, you would pay the first $500, and your insurance company would pay the rest. Insurers often offer annual premium discounts when you raise your deductible.
Market Value Differs from Insurance Value
When considering home insurance, it helps to know what the difference is between market value and insurance value. The market value is based on a home’s worth when selling or buying it, while the insurance value is how much coverage you’ll need to rebuild the home if it’s destroyed by an event such as a house fire. Insurance failure due to inadequate coverage can lead to tax penalties and foreclosure.
Reevaluate Your Personal Property Annually
It’s important to review your schedule of personal property to make sure it’s up-to-date. You should review your list every year, especially if you have an item that has accumulated a lot of value. Additionally, take photos and/or videos to keep as backup documentation in case something happens to your possessions.
Install Safety Measures
You could score big savings by protecting your home from fire, and you’ll sleep easier knowing that your family and home are protected. Whether you decide to install a home fire alarm system, home sprinkler system, or smoke detectors only, make sure you check your policy to be sure you’re getting the appropriate discount. If you already have a fire alarm system or smoke detectors, check with your insurer to find out if you’re eligible for a discount.