Whether
you own or rent your home, insurance is essential to protect your property and
household goods. Comparison shopping for the best rates will certainly save you
some money, but you also can save by following these tips:
·
Choose a higher deductible—increasing your
deductible by just a few hundred dollars can make a big difference in your
insurance premium.
·
Ask your insurance agent about discounts. Dead
bolts, smoke and carbon monoxide detectors, security systems, storm shutters
and fire-retardant roofing material are just some of the home safety features
that can often lower your rate. You also may be able to get a lower premium if
you are a long-term customer or if you bundle other coverage, such as auto
insurance, with your provider. Some companies also offer senior discounts for
customers who are older than 55 years.
·
Don’t include the value of the land when you are
deciding how much coverage to buy. If you insure your house, but not the land
under it, you can avoid paying more than you should. Even after a disaster, the
land will still be there.
·
If you’re a renter, don’t assume your landlord
carries insurance on your personal belongings. She or he likely doesn’t.
Purchase a separate renters’ policy to be sure your property—like furniture,
electronics, clothing and other personal items—is covered.
Don’t wait until you have a
loss to find out whether you have the right type and amount of insurance. For
example, many policies require you to pay extra for coverage for high-ticket
items like computers, cameras, jewelry, art, antiques, musical instruments, and
stamp and coin collections.
Furthermore, not all coverage
will replace fully what is insured. An “actual-cash-value” policy will save you
money on premiums, but it only pays what your property is worth at the time of
loss (your cost minus depreciation for age and wear). “Replacement” coverage
gives you the money to rebuild your home and replace its contents.
Finally, a standard homeowners’
policy does not cover flood and earthquake damage. The cost of a separate
earthquake policy depends on the likelihood of earthquakes in your area.
