How to Get More Out of Your Home Insurance Policy

10 Tips for Getting the Most Value From a Home Insurance Policy

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10 Tips for Getting the Most Value From a Home Insurance Policy

About Interesting Posts

Interesting documents about a variety of subjects from around the world. Posted on edocr.

Property Insurance Home insure Home insure Policy make Avoid make claim deductible pay money

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 insurance expert. That doesn't mean you need to get 
licensed or hold a job in the insurance industry, but it does mean you should be 
familiar with the most common industrial terminology. If you don't know the 
difference between a premium and a deductible, you're not going to be in a 
position where you can maximize the value of your insurance policy. 
Review an insurance glossary so you understand all the jargon, and become 
familiar with all the common practices of the home insurance industry. The more 
educated you are in this field, the better decisions you'll be able to make as a 
consumer. 
Push for Discounts 
Don't hesitate to ask your insurance carrier for discounts for which you might 
qualify. Sometimes, you can pay a lower premium just because you asked. 
These are some common discounts you might be able to score: 
·       Bundles. Insurance providers make more money if you have multiple 
policies with them, so they're typically willing to incentivize you to bundle policies. 
You might pay less for home insurance if you also have a car insurance policy 
with this organization. 
·       Upgrades. Making certain upgrades to your home can make it more 
affordable to insure. For example, if your home has an antiquated electrical 
system, upgrading that system could reduce your fire risk, and thus reduce your 
insurance costs. 
·       Security. Many insurance companies provide you a discount if you have an 
active security system in your home. 
·       Loyalty. If you've been with this insurer for many years, you may be able to 
score a loyalty discount as well. 
Consider Increasing Your Deductible (and Saving an Emergency Fund) 
You'll typically pay a lower premium if you have a higher deductible. Your 
deductible is an amount of money you'll be responsible for paying if you make a 
claim, so it's important to raise this deductible with care. Consider saving up an 
emergency fund so you can cover the deductible if necessary. 
Avoid Making Claims 
The more claims you make, the more your premiums are going to increase. 
Avoid making claims for small instances of damage; it's usually better to cover 
these costs yourself. 
Review Your Policy Regularly 
As you grow, your needs will change – and your insurance policy should change 
with them. Take the time to review your home insurance policy regularly and 
update it as needed. 
Home insurance can be complicated, but it doesn't have to be. It also doesn't 
have to be a financial burden. With these tips and strategies, you can get more 
coverage for less money – and rest easy knowing you have superior protection