| Before getting insurance |
| Deductible and premium |
| Home discounts |
| Other discounts |
| Get insurance |
| After getting insurance |
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| Before getting insurance |
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Find out the value of the house for insurance coverage. It can be based on a recent appraisal or record of recent home sales in your neighborhood. |
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Create a list of personal belongings like appliances, furniture and jewelery inside the house along with their valuations. |
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Most standard policies will provide coverage for damage caused by theft, fire, and smoke. |
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Some insurance policies will provide coverage for liability claims, medical payments to third parties and some legal costs. |
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Most of the time, mortgage companies require you to have homeowners insurance to protect the house. |
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Check out the following tips regarding deductible, premium and discounts before buying an insurance. |
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| Deductible and premium |
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Deductible is the amount that you have to pay for each insurance claim before reimbursement from insurance begins. |
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Premium is the monthly payment paid for the howeowners insurance. |
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The lower the deductible, the higher the monthly premium becuase the insurance company has to pay higher for each claim. |
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The higher the deductible, the lower the monthly premium because the insurnace company has to pay lower for each claim. |
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So the higher your deductible, the lower the monthly premium for the insurance. |
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Look for the lowest monthly premium with the highest deductible for the needed insurance coverage. |
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| Home discounts |
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Discounts are provided for added home security features like Smoke Detectors, Security Monitored Alarm Systems and Deadlocks. |
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Also Neighborhood Watch areas and fire extinguishers might also get some discounts. |
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Cement and Concrete based house construction will get a discount compared to a wood frame house. |
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Find out the actual distance from the closest Fire hydrant, Firse station and Police station. Discounts are provided for homes closer to these facilities. |
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New homes built within the last 5 to 10 years receive a discount. |
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Also renovated homes with major electrical, heating and plumbing changes will receive a discount. |
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| Other discounts |
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Premium discounts are offered non-smokers that donot smoke or will not allow smoking inside the house. |
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Discounts are also offered to Retirees or senior citizens because they stay home most of the time and they can better protect against fire and burglary. Similary discounts are offered to homes that have live-in house keepers. |
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Discounts are offered to people that have never applied for a homeowners insurance claim, because of good home protection record. |
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Some insurance companies provide discounts for consolidating all insurance policies with them like auto and life insurance. |
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Some insurance companies provide discounts for homeowners without any mortgage (with paid off mortgage). |
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| Get insurance |
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Get and compare quotes from several insurance companies. |
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Check out coverage, deductible and monthly premiums of all quotes. |
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Check out the available discounts from these insurance companies. |
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Check and verify the reputation of the insurance company with your state's department of insurance. |
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Remember that lowest price is not always the best deal. |
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Select the best insurance policy and buy it. |
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| After getting insurance |
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Read the full insurance policy for the exact coverage (including fine prints). |
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Make sure all the listed personal belongings in the house are covered by the homeowners insurance. |
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Damages caused by flood, earthquake, terrorism and other special events are not covered by most policies. If needed, please get special policies that will cover these events. |
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Save the Personal belongings list in the safe place like Bank. If possible, please take a picture of the belonging at the time of initial coverage. |
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Update this list with the purchase of every new expensive belonging. If possible, please take a picture of this item right away. Inform the insurance company about the new item and update the insurance coverage as needed. |
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If it is a insurance company change, please inform the mortgage company about it. |
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