Once you have bought your own sweet home, you will need to make sure that you adequately safeguard your asset and derive some benefits out of this process. This can be done by a careful selection of home insurance policy.
In this article we will enlighten you with some smart ways to make the best out of your home insurance so that you can avoid wasting money and making compromises that you don't want to make with your policy.
Home insurance isn't a luxury. It is a necessity. The good news is that, even though you can't avoid paying a home insurance you can still minimize the costs of it. The first step in doing this is to buy some security systems, like those against fire or thieves. This will minimize the costs of insurance by almost 5 percent. There are a lot of security companies which will monitor your house for a fixed sum, which will be, in any case, lower than that you will need to pay for an unsecured house insurance.
You will also need to raise your deductible, exactly like you need to do when you decide to buy a car or a health insurance. The higher the deductible, the lower the annual payment to be made to the insurance company. The problem when you'll do this is with the small damages of the house, which most probably will be paid from your pocket.
You can further get discounts from the insurance company through multiple policy discounts. For this you must buy more than one type of policy form the same company to avail greater discounts. An example of this could be buying health insurance as well as homeowners insurance from the same company to get as much as an extra 10 percent discount. This option is available even if it’s your wife buying the second policy from the insurance provider.
It would help your cause if you can plan the essentials of constructing another room or a new home. If you use wood instead of bricks in the construction, then that increases the chances of fire. Again, using cement and steel structures also brings down the insurance price.
Get used to review your policy periodically and compare them. Make note of any changes that happen in the interim that can lower your costs. If you bulldoze a part of the house, for example, for sure your policy costs will be lower, since the risk area is smaller. You should also look for changes in the neighborhood that can lower your costs. A clear example of the type of changes that will help you, in the future, is the installation of a hydrant or the establishment of a new police station near your house.