8 Ways To Keep Your Home Insurance Costs Low

All homeowners are looking for ways to reduce our home insurance costs.  Costs continue to rise and budgets get tighter and tighter with each passing year.  Here are 8 tips to reduce your home insurance costs.


1. Increased Home Security
Most homes are fitted with some sort of security device. To make the most of your Home Security Discount make sure that you home is fitted with: dead bolt locks, smoke detectors, fire extinguishers and a burglar and fire alarm that are monitored. You do not have to have all of these to receive a discount on your home insurance so even if you only have one or two make sure that you ask for the savings.

2. Keep your credit score as high as possible.
While it would seem that a good credit score would have nothing to do with insurance rates, it is a fact that they do. Home Insurance companies are using your credit score as an indicator of responsibility. The theory is the more responsible the individual the less claims they will have. So, insurance companies are giving lower rates to those individuals with a better credit score.

3. Consolidate your policies.
Most, if not all companies that sell home insurance, offer discounts for insuring your autos with them. These discounts can sometimes save you up to 30% off of your total insurance bill. Plus, you get the added convenience of having one agent for both your home and auto insurances.

4. Protect your home with updates.
Discuss with your agent about the possibilities of receiving home insurance discounts for keeping your home in good repair. Some home insurance companies will offer savings for a anew roof, electrical, HVAC, plumbing updates. The discounts are generally not enough to warrant the replacement but if you needed it anyway, be sure to get the discounts if applicable.

5. Make sure you are not over insured.
Your home insurance coverage should not necessarily be what you paid for them home. Land values are calculated into the final sales price and should be considered when insuring the structure. In others words you cannot hurt the dirt. A good idea is to call local builders and ask them what new home construction cost per square foot is going for. Take that number, multiply that times your square footage and that is the amount that your home should be insured for. Companies will not pay more than what it is going to cost to rebuild the home anyway, so make sure you are insured correctly.

6. Stay away from low deductibles.
The deductible is your portion of the claim that must be paid before the insurance company pays for the claim. The lower your deductible, the higher your premium will be. Deductibles can range anywhere from $100-$5000 or more. The majority of homeowners will carry a $500 deductible, but the savings one can receive by raising your deductible to $1000 can be significant, up to 20%. It doesn’t take too many claim free years to make up the difference between the two deductibles, but remember you should never raise your deductible to a level that you could not afford to pay.

7. Ask your home insurance agent.
Most of the time, an agent will make sure that you are receiving 100% of the home insurance discounts that you qualify for, but it doesn’t hurt to ask. Some insurance companies have discounts that others do not. Some offer discounts that most would never dream as being a discount such as 55 and retired, non smoking, military service, law enforcement, single parent discounts, etc.

8. Don’t be afraid to shop around.
Home insurance shopping is easy. Insurance shopping online is even easier. Companies like ours at HometownQuotes.com (yes, I am biased) have given you the ability to get multiple home insurance quotes by filling out a form that takes about five minutes to complete. Also be aware that not all insurance companies are created equal. There are some bad ones out there but most, at worst, are pretty good. Getting the best price is great, but check up on the company offering you that price at reputable insurance rating sites like Moodys.com or AMBest.com.

About the Author: Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit
Sunday, February 20, 2011 by Toolib · 0 komentar

Is Homeowners Insurance Enough in the Toughest of Times?

Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent’s home and office were destroyed in the disaster also?
That is what happened to many customers and homeowners insurance agents and companies after Katrina hit the Gulf coast. Many agents' homes, offices and insurance Companies' claims centers were in the same situation as their clients due to the storms. So what did they do? They set up “office” in tents and mobile trailers. Then Hurricane Rita blew away these temporary offices and the agents and companies set them up again. These temporary shelters acted as a communications center for all people in the surrounding areas. Local people would come by to ask questions, meet with their claims adjustors and just catch up on the news with their neighbors.

Extreme circumstances dictated unconventional responses: some agents even filed claims for their clients without even talking to the clients just so they could get the claim “in the queue.” Allstate allowed customers to submit claims through any agent in the country and set up a priority line to assist. They sent email to agents in the areas surrounding the disaster areas to act as messengers by “word of mouth” to their fellow agents in the effected areas. The larger companies such as State Farm & Allstate that service claims for the national flood Insurance Program even used satellite imagery to determine damage in some neighborhoods that were entirely flooded.

Lessons Learned: Those of us not effected by these disasters can learn a few lessons about coping with future disasters from the thousands of policyholders that are still waiting to get their claims paid. As soon as possible, take steps to prevent further damage to your home if possible: such as covering the roof with a tarp if possible. You can hire a contractor if you can find one, as that would be safer for most of us than climbing on our roofs. Hold off making any repairs until you see or talk to an adjuster first. Plus, keep your receipts, as you’ll need them to prove expenses that can be re-imbursed later.

What Does Homeowners Insurance Cover?

You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks’ worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.

If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn’t a great idea because if your home burns down and you weren’t able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.

Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year’s at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.

If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.
by Toolib · 0 komentar

Homeowners Insurance & Keeping Track of Your Goods

Homeowner’s insurance is an invaluable investment for every homeowner. If your house went up in flames and you lost everything, would you be able to recall everything you owned, including the items’ values? If you came home from work to find someone burglarized your home, would you be able to account for everything that had been taken or destroyed? While some items are priceless and/or likely have sentimental value, memories unfortunately are not sufficient for filing a homeowner’s insurance claim in the wake of a disaster.
In times of distress, you shouldn’t have to worry about whether your possessions are covered or not. If you purchase homeowner’s insurance, it is important to know what your policy covers. Not sure what’s in your homeowner’s policy? That topic will be covered in a future article.
Your homeowner’s insurance, ideally, will replace the cost of what you lose in a disaster. More importantly, however, is the fact that you will only be compensated for what you can account for. In other words, fond memories are heartwarming, but they will not reimburse your losses in a catastrophe.

“But how will I account for everything I lose in such an event?”
Well, the most accurate way to keep track of your items would be to take an inventory of everything you own. While this is a process that could take months to complete, it is your most worthwhile strategy should you experience misfortune.

“What do I need to put in this inventory?”
Put simply. EVERYTHING. The more you can account for in your homeowner’s insurance claim, the more likely you will be reimbursed. The list should be as detailed as possible and should include appliances, carpets, jewelry, furniture, linens, antiques, furniture, and the list goes on. To get your money’s worth, go from room to room and be sure you are as descriptive and detailed as possible. Include:
  1. a description of the item (including the quantity)
  2. the manufacturer or brand
  3. any model or serial numbers
  4. a description of where or how the item was attained
  5. the date of purchase or age of the item
  6. receipt or other proof of purchase that shows the cost
  7. the current value
  8. the replacement cost
  9. photocopies of appraisals
“I’ll never complete this process!”
Keep in mind that while this documentation process may be time-consuming, it is certainly easier than remembering everything you own. Don’t let this task discourage you. Take photos. Even better, make a night out of it. Grab your video camera and go from room to room to create a visual and verbal description of your items. It might take you an hour to document your entire house. Regardless of how you complete your inventory, remember that your compensation rests on the quality of your documentation.

“I’ve made the inventory, now what?”
It is likely you invested a good amount of time to document your items. Whatever you do, keep that homeowner’s insurance inventory safe! If an unfortunate event comes your way, you certainly do not want your hard work to go to waste. Store it in a relative’s home, in a lockbox, a safety deposit box or keep it tucked away in your office desk. While memories and keepsakes can rarely be replaced, it’s comforting to know your homeowner’s insurance will keep you financially secure should you properly document your items.
by Toolib · 0 komentar

Premises Liability

Everyone may laugh at the slapstick comic who slips and falls on a banana peel, but if you own property where an injury occurs or happen to be the one who slips and falls... it's no joke.
Premises liability law most commonly involves a plaintiff in court seeking monetary or compensatory damages for any injury sustained on someone else's property.
The law assumes the landlord invited the injured party and the 'invitee' was injured. If the injury occurred because of a condition that the landlord could have prevented by normal maintenance that just wasn't done, then the injury was preventable.
The property owner is responsible for someone falling on a flight of stairs with a broken banister, poor lighting, or loose carpet — in just the same way as if they had pushed the injured person down the stairs.
There is not usually a criminal complaint involved, but the financial damage to the property owner can be severe. The purpose of these laws are to make sure that landlords make sure that they maintain their property in a safe condition.
Commercial owners are most prone to lawsuits simply by the fact that the sheer number of their visitors will increase the odds that someone may sustain an injury while on their property.
However, homeowners are also subject to paying damages if they are proven to have been negligent, or have failed to provide a safe environment for their guests. Most homeowners insurance policies cover liability in these instances, however (with extra protection, if necessary, provided by umbrella liability insurance.)
Typically, premises liability cases come to court for injuries involving a common slip and fall. Yet more serious or even life threatening accidents may occur depending on the circumstances:
  • slick or icy surfaces
  • uneven pavement or roadways
  • falling tree branches
  • broken handrails or stairs
  • faulty elevators or escalators
  • inadequate lighting
  • lack of security in a high crime area
The onus of responsibility always falls to the owner or holder of the property for a person who is injured on that property. Further, premises liability law distinguishes the relationship between the person owning or holding the property and the injured person.
Depending on the U.S. state, courts are sometimes more lenient with homeowners than with commercial properties wherein "invitees" or customers are injured due to negligence.
Perhaps not surprisingly, criminal trespassers are also covered under premises liability law, although only in circumstances where they are not alerted to extreme danger - such as attack dogs used for security, or an electrical fence that provides a lethal shock.
In contrast, employees who are injured at the same property are not covered by premises liability law, but rather protections provided under worker's compensation law.
Tuesday, February 15, 2011 by Toolib · 0 komentar

New Homeowner Insurance Basics

The lowest mortgage rates in more than three decades have fueled America's appetite for buying housing and refinancing driving new home sales to record levels. Buying a home can be an intimidating process, especially for first time homeowners Housing may feel overwhelmed by the number of decisions they face, including choosing the right insurance coverage to protect their property. Find out what need to know to protect one of their most important assets.
A home is often the greatest asset of a person and to protect adequately can be difficult. The unexpected can endanger people's homes or property and commit financially, making sure that owners of an important consideration.
HDA Brokerage Insurance developed the following guidelines to facilitate the process of choosing the right insurance for new home buyers.
First time homebuyers do not realize that homeowners insurance covers only the structure of a house. It also protects the homeowner and generally anyone named on the policy, including a spouse, resident, household employee, guest or visitor. Most policies offer three types of protection:
1. Structures – A policy protecting Homeowners of any person for damages due to common threats like fire and smoke, lightning, theft and extreme weather conditions. Unless that is among the exclusions of the policy, everything that relates to a lost cause or property owner. To cover the exclusions, homeowners can often pay to add endorsements to your policy, though some exclusions, like flood damage and earthquake damage, may require the purchase of an independent policy.
Amount of Coverage – When choosing coverage amounts, people should remember that they are protecting the house (the house), not only the balance of the mortgage or heritage in the building.
2. Personal Property – Family possessions and personal belongings are also covered by homeowners insurance. In most cases, a policyholder will be reimbursed for damage or theft of personal property, if the loss occurs in the protected spaces or elsewhere. Recalling every item in every room can be difficult, however, so policyholders are encouraged to take an inventory of their possessions – recording the serial numbers, furniture and dates and costs of purchases of goods such as jewelry, artwork, and appliances. Personal inventories should always be stored in a safe or out premises, such as videotape or a computer that is not in the house.
Amount of coverage – typically, the insurer sets the total value of the property to the half of what the house is insured. But there are limits for certain items and the amount is not sufficient to cover the replacement of property, so owners may want to purchase additional coverage for your possessions. Review of a homeowner personal inventory is the best way to determine if your coverage is sufficient.
3. Liability – Homeowners insurance also provides compensation for liability claims and medical expenses and other actions that result from property damage and personal injury suffered by others. This coverage applies whether an accident occurs on the insured's property or while away from home.
Coverage Amounts – The total amount of liability coverage is $ 100,000 in a typical policy for homeowners. If the owner of a home feel than the standard amount may be insufficient, you should consult an insurance professional about the availability of a higher level of coverage.
After establishing a policy, homeowners should periodically review your current coverage to make sure they keep pace with major purchases or improvements make to their homes. Ensure adequate insurance policy at the right price is an important step in the purchasing process, so homebuyers should shop around for a policy that best suits your needs and protects their most valuable asset properly.
Note that this description / explanation is intended only as a guide.
by Toolib · 0 komentar

homeowners insurance tutorial

By now every Joe Schmoe knows about potential property market. There have been enough TV programs, books and stories about flipping houses that the market has become overrun by money hungry people looking to get rich quick. But nothing has really changed?
The idea of investing in real estate and properties is nothing new. The potential has always existed, as always. The problem is that the actual process of house flipping is much more difficult for programs understand television. Sure, on paper, the concept of buying a hidden gem at a great price, slapping on a coat of paint, and resale of thousands of dollars more sounds good. If only it were that simple.
It's complicated! The home buying process is a lengthy and complicated, which may collapse due to numerous factors. Think about it, most people buy a house during his life and spend the next 30 years to pay. That means that most people who are not versed in housing contracts, mortgages, broker fees, etc. You really need to know what you're doing. If you misread a contract or understand the fine print, you could end up handing out thousands of dollars!
It takes a long time! Most people do not have the luxury of starting with a large volume of investment capital. Most of the jobs full time job just to pay for daily expenses. This means they must hunt for houses on breaks, then work and on weekends to find a good deal. Once you find that much has to be able to act quickly. Some homes only stay on the market for a day. Heck, some houses do not even get to the market and real estate agents give to their friends DIB first. So if you're lucky enough to find a good deal, you will have to contact contractors, realtors, insurance companies and all businesses need.
It's expensive! So you think can understand the process and you have the time, but has no money? For a large mortgage you need proof of income or proof that you will be able to pay the bank. If you want to buy $ 200,000 home, have $ 20,000 for the down payment. If you can scrounge up that much together, you also need money for the renovation and the money to pay the mortgage until the house is resold. One more thing – you need credit. So if to come into some money, you still need to have good credit, to obtain the loan.
If you're still interested then go for it. I the image of the industry only can exist for long before the reward is not worth it. There is also a key aspect that makes this job so risky – the market. You can not control the market. You can not control when and how many homeowners will sell their homes. What if a natural disaster? I live in San Diego, and I'm sure recent wildfires have affected the value of many properties. The houses probably will rise again, but in the meantime people not to feel they are at risk.
So where will the market go? Who knows? Maybe people will start to flip trailers.
by Toolib · 0 komentar

Resolutions for Home Sellers in 2011

If your New Year's resolution involves selling a home in 2011, you've got some work to do: There's lots of inventory out there and in a buyer's market like this one, getting an offer on a home can be challenging.

Still, for the committed seller willing to do some prep work and come to terms with the current value of his or her home, locking in a buyer isn't impossible.

By listing in early January, you might be able to catch some of those early birds who start browsing in the winter so that they can find a new home before school starts in the fall, said Louis Cammarosano, general manager of HomeGain.com, a real-estate website. In fact, many buyers tend to start their searches online right after Christmas, and continue throughout January and February, he said.

"If you hit the ground running and you're a fresh listing that has done everything right, you've got the best shot," said Cammarosano.
Consider the following tips to give your home the best chance to get noticed -- and sold -- in 2011.

Price It Right from the Start
Many sellers suffer from attachment bias, said Tara-Nicholle Nelson, consumer educator for real-estate website Trulia.com. They believe that their home is worth more than they'd pay for it in another context. While it's always a bad idea to overprice a home, it's especially dangerous in times like this because there is so much competing inventory in many local markets.
Nelson's advice: Give yourself a reality check by looking inside comparable homes during open houses. That can help you get a clearer idea of your home's value.

You might even consider interviewing a few real-estate agents to get more than one take on how the home should be priced, Cammarosano said.
The longer something sits on the market, the more price reductions you might have to make and the more potential buyers will assume that there's something wrong with the home, he said. So more often than not, it's best not to try testing the waters with a higher price, he adds.
Don't be afraid to advertise in the listing and marketing materials that it's not a foreclosure or short sale, Nelson said. In markets where distressed sales are plentiful, there are buyers who simply don't want to deal with the extra hassle and uncertainty of a short sale or bank-owned property, she said.

Get the House Ready
Most sellers know they need to declutter, paint in neutral colors and generally stage the home as best as they can to help buyers envision themselves in the home. Often, this is done on the advice of a real-estate agent or professional stager.
The closer you can get your home looking like a photo from a Pottery Barn catalog, the better off you will be, said Beth Jaworski, a real-estate agent in the Milwaukee area.
And make sure that your cabinets and refrigerators are cleaned out and decluttered, too. "You want to have a minimum of 'stuff' in the house. The less stuff you have, the larger the closets, basement and garage will look," she said.
Jaworski also recommends having a home inspection done a month before putting the home on the market to identify any major defects that need to be corrected.

Provide as Much Information as Possible
Have energy bills and a list of updates available for buyers to see, Jaworski said.
"Buyers are always curious what the utility bills are, how old the roof is, how many layers it has, how old the major mechanicals are and when that addition was added," she said. "The more information you can provide on the house, the better."
Consider providing a floor plan with listings as well, Cammarosano said. That way the prospective buyers don't have to keep making return visits to determine how their furniture will fit in the space -- they'll have the dimensions in hand.

Make It Easy to Show
The more available you can make your home for showings, the better, said David Welch, a broker/associate in Orlando, Fla.
Make it easy for your real-estate agent to access the property and keep the place clean.
"You want your home to be easy to show because you don't know if you will get a second chance," Welch said. "Trust me, the buyer wants to like your house. Keep it in show-ready condition," he said, so they aren't turned off by a first impression.

Be Flexible
Buyers are in the driver's seat these days, and they know they can make all sorts of unusual requests without risking the deal. Be ready.
"Buyer wants to see the house at 7 a.m. on Tuesday, OK," Jaworski said. "Buyer wants to bring 10 family members and an inspector to check out the house for three hours this weekend, OK. Buyer wants you to include the kitchen table and chairs, the painting over the fireplace and your snow blower, OK."
"The more flexible you are," she said, "the better off you will be."
Sunday, February 13, 2011 by Toolib · 0 komentar
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