After purchasing your beautiful dream home from foreclosure, it needs to be insured, it is highly recommended you insure it for what it would cost to rebuild the home. In most instances, dwelling coverage is based on replacement cost, which means if a total loss occurs, the policy will provide reimbursement, up to the policy limit, to replace your home. To set the proper policy limit the homeowner needs to understand the cost to rebuild this home and insure it to completely rebuild the home, also known as replacement value. For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local building costs per square foot. To find out construction costs in your community, call your local real estate agent, builders association. This figure may not be the home’s actual market value or what the owner originally paid for the home. This is particularly true in today’s market; where homes are being bought from foreclosures at prices well below the cost of rebuilding this home. When insuring your home, replacement cost policies are the best way to protect yourself.
Once you have determined your replacement cost, your ready to start shopping.
Comparison shopping is a great way to save money. When insurance companies compete for your business; you win. Results have shown that consumers can save 20 % and more just by taking five minutes to compare rates from top rated insurance companies. Compare Homeowner Insurance Now has done all the research and due diligence to make sure that you can get all the facts you need here at our site.
Listed below are additional ways to save on Homeowners Insurance.
Increase your deductible
- $500 save up to 10 to 15% .
- $1,000 save up to 20 to 25%.
- $2,500 save up to 25 to 30%.
- $5,000 save up to 35 to 40%
If you raise your deductible make sure you can afford this out of pocket cost, if there is a claim.
Insure your home, not the land. In different parts of the country the land is actually more valuable than the house that sits on it. Even though your home and your belongings are at risk from fire, storms, vandalism and other risk, the land your house sits on is not. When deciding how much homeowners insurance you need to buy do not include the land.
Make your home safe, adding a security system, deadbolt locks, smoke detectors all can reduce the premiums.
Non-smokers discount. Smoking is the number one cause of home fire deaths in the United States.
Are you a Senior Citizen or retired; some insurance companies offer discounts.
Setup your payments to be paid electronically or thru escrow. Numerous companies now charge fees for mailed payments, having your payments automatically deducted can save additional money.
Check your credit rating. If your insurance company relies on credit scoring, they may use it in two ways:
- Underwriting — Deciding whether to issue you a new policy or to renew your existing policy.
- Rating — Deciding what price to charge you for your insurance by placing you into a specific rating "tier" or level.
Review your credit rating and it’s accuracy often.
Comments are closed
