Many home
owners are not clear on exactly what their insurance covers or what
the level of coverage is. They assume that if there is a catastrophic
loss, they will be covered almost without exception. It is a smart idea
to take a close look at your current Homeowners' Insurance policy and
review the following major components.
Homeowners'
Insurance Checkup
What
is covered: Have you made any additions or improvements
to your house that will need to be added to the policy? If you have,
inform your agent in writing and send photographs to validate the improvements.
What
is the coverage level:
Has the value of your house risen in the last year? If you do not have
a rider that automatically raises your coverage on an annual basis,
you will need to adjust your level of coverage to match the increase
in property value.
Guaranteed
replacement cost:
Does your policy stipulate that you will be paid a guaranteed replacement
cost or is there a limit to your coverage. Review this with your agent.
Liability
Insurance:
What are the limits of your coverage in a situation where someone may
be injured in your home?
Content
Insurance:
Have you added any expensive items (computers are a prime example) that
need to be added to your policy?
How
to maximize your coverage and minimize your premium cost
The following
are a number of methods that you can use to potentially lower your annual
premium for your Homeowners' Insurance. Consult your agent to see which
apply and how much you can save. In addition, most will add to the safety
and security of your house.
Dead
bolts:
Install dead bolts on all exterior doors.
Security
alarm:
Install a security alarm
Smoke
detectors:
Have smoke detectors on all living levels.
Fire
extinguishers:
Have operational fire extinguishers available in the house.
Consider
a higher deductible:
If you are comfortable with the possibility of having to pay a bit more
out of pocket in case of a loss, raising the deductible (the amount
you will pay when there is a claim) will lower your annual premium.
Multiple
policy discounts:
Have your homeowners' policy and auto policy with same insurer: Many
insurers will give you a discount if you maintain both policies with
them.
Source:
Our Family Place