Household insurance is a necessity: you can’t even buy a house without it in most places! What kind and how much house insurance you buy has a big impact on your wallet, both now and in the event you need to make a claim. What can you do to save yourself money? Get informed!
The two kinds of house insurance
You will need to purchase two insurance policies, one for your house, and a separate policy to covers its contents. These are generally two separate policies. The policy that covers your house may also cover any other outbuildings on your property. The policy that covers your household possessions will not generally cover possessions that are not permanently kept in your house, such as jewelry and laptops. You may need to purchase a third policy to cover your ‘mobile’ possessions.
Insuring your home and outbuildings
The steps you take to reduce your expenses for home insurance are different from those to insure your household contents. Many banks that give out home loans also specify which insurance company you must use. This can be a good thing, if they want you to use some insurance company because it is reliable and reputable. Or it can be a bad thing. There is always the possibility that they just have a deal with the insurance company, which doesn’t spell out savings for you in any way. To protect yourself, shop around for both lenders and insurance companies. That way you’ll have a good idea of how much coverage should cost.
Once you settle on a good insurance company, you may want to consider using them for all of your insurance needs. Chances are you can get better rates if you use them for multiple types of coverage. They will want to get your business, and it will save you some bookkeeping if you keep all you policies under one roof.
The amount of insurance you purchase to protect your new home is determined by its value at the time of purchase. As time goes by, your house will probably increase in value. Make sure your coverage increases too. It is false economy to under-insure your home, especially while you are still paying off the loan!
One good way to save money on your policy by setting the excess you pay under the policy to the highest you can afford. The excess is the amount you pay if you have to make a claim. The insurance company pays for claims above the excess up to the maximum coverage. So the higher the excess you decide you can afford in the event of a claim, the lower your premiums are going to be.
Insuring your household possessions
There are a couple of things you can do to save money on your household contents insurance. First off, don’t over-insure. This is a common mistake people make. You can’t claim for items you don’t have, so you will just throw money down the drain every month. Take stock of your possessions and insure accordingly. Some companies require security devices before they will even insure you. Others will decrease your premium if you install additional security devices. It’s a good idea to have a look at the cost breakdown of purchasing and installing these devices. You insurance company can give you an idea of how much you can save on your policy.
Once you have a look at your policy, you may find even more ways to save, by cutting down on some types of coverage that are not necessary, and increasing your excess. Saving on insurance is a matter staying informed, and keeping your coverage up to date and appropriate to your lifestyle.
About Author
The author specializes in household insurance in South Africa. If you need to read more on insurance quotes, visit Getinsurance.co.za
Get good grades so you can get the "good student" discount, put your name on your parents' cheapest and oldest car only, and tell the company exactly how many miles a month you plan to drive and where.
pamiekins
8 Feb 10 at 3:39 pm
You should talk to your agent. I do not know your market, but I would drop to 74,500. This opens you up to another market of people searching under 75k.
PrayerLady
8 Feb 10 at 4:53 pm
It probably was in the papers you signed – that if you got behind in taxes or insurance that it would then be in an escrow. It's nicer of them to do this than to foreclose, don't you think?
brad
8 Feb 10 at 11:49 pm
interest only loans are no good…you should consider workin two jobs for extra income or maybe rent out a room…and refinance as sonn as possible…
jean s
9 Feb 10 at 7:41 am
Appears mostly the Midwest. See the link below. Wisconsin, Iowa, ND and SD are probably your best bets. Housing would likely follow suit apart from some of the larger metro areas.
http://www.insurancenewsnet.com/article.asp?a=top_pc&neid=200612071180.3.129_b4ba0015800019b9
gargindia
10 Feb 10 at 1:30 pm
yes if thet have been stolen they should be able to help you in some way even if it is replace them and charge you a fee. you could claim against your insurance but they might no accept the claim. speak to the council they may accept instalment plan but do not tell them about your major habit
lonely as a cloud
10 Feb 10 at 5:23 pm
There could be many reasons for the increase in your insurance rates, not the least of which is the large claims insurance companies are having to pay as a result of disasters like Katrina. The costs are commonly spread among all policy holders to one extent or another.
Best advice is to review your policies with your Nationwide agent and get an explanation for the increases. Next step would be to shop around for coverage with other insurance companies based on the same coverages so you can compare fairly. Don't be afraid to switch companies.
I think it is essential to sit down with your family attorney every two years and review all insurance policies and coverages. Needs change over time. Laws effecting insurance companies and policy holders also change over time. For the small amount of money you will spend for your attorney's advice, you will be paid back in spades. This routine has saved my bacon a couple of times over the years.
Good luck with your situation.
dontknow86
10 Feb 10 at 8:51 pm
I'm from Miami & was having trouble finding a home policy. Other than Citizens the best I found was at: http://www.insureme.com/landing.aspx?Refby=613178&Type=home
lissette b
11 Feb 10 at 1:22 pm
The coverage limit of your homeowners policy is based on the cost to build your home as is. Construction cost. Not market value. Although the market value has gone down….the cost of construction materials has gone up.
MICHAEL A
11 Feb 10 at 3:01 pm
Good question, I'm not sure. I also recently switched insurance companies, but in my mortgage, I'm responsible for it. No money is taken out for insurance. Alot of Texas loans are setup this way. In your case, I would contact your mortgage company and try to get it adjusted to the new rate (which means they will be charging you less per year). Its best homeowners shop around for insurance, mortgage companies certainly won't, what do they care about saving you money.
Good luck!
Galactus
11 Feb 10 at 5:11 pm