How to Get More Out of Your Home Insurance Policy
If you own a home, you probably already have a home insurance policy in place.
If you bought the house with a mortgage, your bank likely required you to have
an active (or soon to be active) policy before lending you the money. Even if you
bought the house in cash, you likely realized that home
insurance was a wise investment.
But home insurance should do more than just afford you
basic coverage. How can you get the most value out of
your home insurance policy? And what changes can you
make to an existing policy to get there?
See Your Insurance as an Exchange of Value
First, learn to see your home insurance policy as an exchange of value. This isn't
just something that your bank requires, nor does home insurance look identical
for all homeowners. You're going to pay a monthly premium for your home
insurance, so it's your responsibility to make sure you're getting your money's
worth.
There are only two ways to tilt the value exchange in your favor. You can either
reduce what you're paying or increase the value you get from your policy. We'll
be looking at strategies that do at least one of these things, and sometimes both.
Take the Time to Shop and Compare
One of the biggest mistakes made by homeowners is choosing an insurance
provider and accepting whatever generic home insurance policy they give you. If
you want to get the most value out of your policy, it's important to shop around
with many different providers and see exactly what types of home insurance they
can offer.
Sometimes, you can get a cheaper rate just by switching to a new provider. Your
home insurance policy may be functionally identical, but for one reason or
another, you can score a lower rate. Of course, at the same time, it's important to
review those policies carefully; just because a policy is cheaper doesn't mean it's
better.
Become an Insurance Expert (Kind of)
If you want to dig deeper into the mechanics of home insurance, you need to
become your own kind of