Shop for Homeowners Insurance before you buy
There is much more to shopping for home insurance than the cost of your home insurance premiums -- although shopping for the best rate can definitely save you a substantial amount of money.
You also need to buy the right type of insurance policy, with the right level of protection, plus special provisions for valuables such as jewelry, your computer equipment and other possessions. You might also need additional coverage to cover disasters such as earthquakes or flooding.
Lending institutions usually require mortgage customers to purchase homeowners insurance. Don't rely on the coverage levels mandated by your bank or mortgage company. Those levels are designed to protect the house itself, but not necessarily your possessions. That's why it's important to check with your agent or insurance company, to make sure you have adequate coverage.
Homeowners Insurance Money Saving Tips
- Increasing your deductible can reduce your premiums by 12-37% - but you'll have to pay more out of pocket if a claim takes place.
- Make sure you are covered for relevant personal belongings only- Don't pay for coverage you don't need.
- Don't include land value in the insurance cost.
- Find out about discounts for such things as security systems, new homes, or multi-line discounts etc.