In this article today I would like to talk about several tips, tricks, and tactics that just about everybody can use to dramatically and substantially lower the cost of homeowners insurance.
Everybody that borrowed money from a bank in the form of a mortgage to purchase a house is required, usually by the bank, to purchase homeowners insurance. The reason this is the case is the bank wants to make sure that they are covered in case something happens to the house because for most people the house is the major form of collateral used to cover the loan to begin with.
Even if the bank did not require homeowners insurance, it would still probably be a very good idea for you to own it because it would be horrible to lose everything you own in a fire or other disaster that destroyed your house without having some insurance to cover the loss.
But that doesn’t mean we have to like it and that doesn’t mean we have to overpay for it, and that’s what I’d like to talk about in this article today.
The first thing you should do is take a personal inventory of everything you own. If there is a disaster and your house is destroyed, this personal inventory is going to be very helpful and allow you to be accurate in your report. Be sure to keep this inventory somewhere other than your house such as a safe deposit box at a bank, or at a relatives house like your parents. This way it won’t be destroyed if your house catches on fire or something.
You should also take photographs or even videos of the things you own because you can use this as proof of ownership if you do have to make a claim.
Another way to lower the cost of your insurance policy is to not insure keepsakes. Many times keepsakes are worth more to you from a psychological point of view and an emotional point of view then they are actually worth value. Insuring these things will not bring back that emotion if you have to replace the item. For instance if your grandmother gave you a set of dishes, those dishes have sentimental value and any replaced dishes that your policy pays for won’t have that same sentimental value. So why spend more money on a higher priced premium to cover them?
Finally, if you have especially expensive items like a fancy computer or flat-panel TV, consider purchasing a separate rider policy that may be less expensive than covering these items in the homeowners policy itself.
So there you have several tips, tricks, and tactics that you can use to lower the cost of your homeowners insurance. Hopefully you never have to use this policy but if you do it’s better safe than sorry. We have many more Insurance Help Articles Now Available.