Homeowner's Insurance Tips & Tactics
- Inventory your possessions:
This is important if your possessions are ever stolen or destroyed in a disaster of some kind. Insurance companies may often want proof (receipts) for some claimed losses. There are kits available to help you take an accurate inventory of the items in your home. - Check & update your policy regularly:
Things have a tendency to change in life. If you put in a swimming pool, for example, your homeowner's insurance policy should change to reflect that and the increased risks and liabilities that come with it. Likewise if you have special coverage for your personal effects, the more stuff you get as you go through life, your policy should be updated to included increased coverage. - Keep your credit strong:
In some states, it may be possible to get a lower rate or a discount based on a great credit score. - Keep your home safe:
Adding security measures to your home such as an active alarm system and extra smoke or CO2 detectors may not only increase the value of your home, but also entice insurance companies to offer you a lower premium. - Go for the higher deductible:
You'd be better off saving up the amount of the deductible and putting it in an interest-bearing account in case of an emergency than paying the increased premiums over time in order to save on a deductible you may not have to pay for years...or ever. - Look for discounts on your policy for these situations that might apply to you:
- Sprinkler systems
- Deadbolt locks and barred windows
- Senior discounts for 55 years-old and older
- Earthquake retrofitting for the home
Staying on top of your insurance policy and the many options available through major insurers who do business in your state is one key to making sure that you have and maintain the most effective policy for your home at the best rates available. Any terms used so far might be confusing to you. If you would like to learn vocabulary terms and their definitions about homeowners insurance, they can be found in the glossary.