Protecting Your Biggest Investment - Tips For Buying Homeowners Insurance

Homeowners insurance is so very important to anyone who lives in a home. Keep a detailed inventory of everything that would need to be replaced.

Make sure that you have a record of everything that is covered under your home insurance. Make a detailed list, and take pictures of all valuables. It also helps to keep receipts for big ticket items. There is free software online that will enable you to create a home inventory, room by room. If you need to make a claim, having all this information on hand will help to speed up the process.

Check the status of your homeowners insurance premiums at least once a year, to see if you may qualify for a lower rate. Your current rate may be based on an old crime statistic, for example, or you may have installed a security system that could lower your rates. Discuss these changes with your insurance agent.

When you have homeowners insurance, about once a year you should sit down and review your policy. Maybe there are things that you have done such as installing smoke alarms, burglar alarms or a sprinkler system. If youve done those things and provide proof, that may help to lower your premium.

If you want to insure your home against flooding, youll need a flood insurance policy. Flooding is not covered by most regular homeowners insurance policies. Protection against flooding covers damage from things like too much rain, creeks rising, landslides and more. If you think you need this additional coverage, speak to your agent, who will explain options and costs for your area.

Putting an addition onto your home will increase your homeowners insurance rates because theres now more home to insure. Minimize the increase by being smart with your building choices. If you can arrange for steel-framed construction, you may be able to pay less by choosing this less-flammable material. Consider the new roofs fire rating as well.

Review your discounts on your policy and make sure you are receiving all that you are eligible to receive. Many companies offer a variety of discounts for home features such as alarm or fire systems or even age-based discounts for older insureds. Take the time to go over your policy and discounts regularly to keep your premium as low as possible.

Homeowners insurance is similar to car or health insurance. The higher the deductible the homeowner agrees to, the lower the annual premium. Higher deductible comes with less claims, as smaller repairs, such as leaking pipes, broken windows are taken care of by the homeowner. Have a savings account with enough funds to pay for the smaller repairs your homeowners policy will not pay for.

Make sure to get a security system for your house. The costs associated with these additional security installments will likely be covered by the money they save with your policy. Your family will have increased protection and you will realize real savings and also boost your homes resale value.

Some insurance companies offer a discount for being claim free for a certain amount of time. Usually this time ranges anywhere from 3-5 years and can offer a discount up to 15% for being claim free. Consider this before filing a claim too. If its not that much of a claim, then dont file it.

While your homeowners policy may protect you in the event of a fire, burglary, or natural disaster, such as an earthquake, it may not cover you for flooding, mold or other common disasters. Make sure you know what you are getting and what additional coverage you may need to purchase separately.

Your insurance agent can explain all your homeowners coverage options. Sharing your list of items and their value can help the agent prepare a proper coverage plan. This list will also be useful if you ever have to replace everything due to being destroyed or stolen.