Homeowner’s Insurance Should Be Part Of Your Financial Planning

There is no way of getting around the need for homeowner’s insurance. Depending on the size of the home, homeowner’s insurance can cost as little as $400 a year to as much as $2000 a year depending on the home’s value and coverage purchased.  The amount of Homeowners insurance you need will also be determined by the value of the personal property, including the upkeep of remodeling on the home, as valuable electronics and jewelry.

One thing to keep in mind while you are searching for homeowner’s insurance is that the rates do vary between each insurance company. There are small ways to save a few dollars to a few hundred dollars, simply by finding some homeowners insurance discounts that are available.

One of the easiest ways to receive a discount on homeowner’s insurance is to install a home security system, and not the type that barks and growls. Many insurance companies are actually paired up with security companies like ADT or Brink’s and will give you a discount for using that insurance company and that security company as well.

Even if you get homeowner's insurance and decide to go back later and install a security system, don’t forget to go back and call your agent once the system is installed so that you can receive a discount on your insurance. Further discounts may be given for motion sensors or even for video surveillance cameras installed on the home.

Another great way to receive a small discount on your homeowner’s insurance is through fire and carbon monoxide detectors and fire-resistant doors. Remember that not all companies will offer the same discount for fire resistance and fire protection, so it is best to do research on how much of a discount can be received before diving into remodeling the entire house for fire resistance. Ask your agent as they can offer great advice.

While some homeowners aren’t willing to consider a higher insurance deductible or the price they will pay before the insurance begins paying for loss or damages, asking for price quotes with higher deductibles is an excellent way to receive a discount on your insurance.

Remember, though, that if you choose this route, you may end up paying more than that $150 savings a year if something happens to your home, and you have to pay the higher deductible. Simply weight the negatives and positives and decide if a higher deductible is right for you.

The main purpose of homeowner’s insurance is to protect you against losses you cannot afford. Few people have the financial resources to rebuild their homes. In addition to protecting your home and possessions, homeowner’s insurance also provides liability coverage to protect you from financial ruin if someone is injured on your property and sues for damages.

A homeowner’s insurance policy consists of coverage for your dwelling and your personal property. It also includes liability insurance, which pays for injuries to other people or damages to their property accidentally caused by you, your family, or your pets. You also can buy several types of additional insurance for property that is not listed in your homeowner’s policy or for perils not covered such as flood for which you need a separate policy

It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what's included and what is not.

Things to consider and questions to ask your agent

Here are few things to discuss with your agent that will influence your decisions.

• How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
• Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
• What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
• What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.) 

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