Secure a Low Property Insurance Rate But Still Maintain Good CoverageBy | April 30, 2013 | Insurance
Everybody needs good coverage when it comes to property insurance, but at the same time every one of us is trying to limit our expenditures as much as we can. So how do we secure a low rate for our property insurance, while at the same time still maintaining good coverage?
Start by Defining What “Good Coverage” Means In Your Case
Before you buy a house, consider beforehand how much it would cost to insure it. To decrease the insurance rates, you don’t have to include the land value when deciding how much insurance to buy—the land won’t lose its value if there’s a fire and a burglar can’t steal it either.
Determine the amount of coverage you need. This amount should be sufficient to help you rebuild your property in case of total loss, at current material and labor costs. Consider also some form of coverage for your personal property within your home, as well as enough liability coverage to protect yourself and your assets from lawsuits should you be charged for damages due to your negligence.
Then determine the amount of deductible you can live with. The deductible is the amount you have to pay from your own pocket before the insurance company has to lend a hand in covering the expenses. The higher the deductible, the lower the premiums.
Choosing an Insurance Company
It’s not enough that an insurance company is offering the cheapest rates for you to select them. Find out what kind of services a company provides, and try to discover also about the financial strength of the insurance company.
Talk to your friends regarding how their insurance company reacted once their services were required. Also, read upon online testimonials to help determine the best company for you.
Things You Can Do To Lower Your Premiums
While the condition of the house is the prime factor in determining the rate of your property insurance, there are things you can do which can also reduce the amount you have to pay insurance companies.
• Stop smoking! Not only is smoking bad for your health, it’s also bad for your finances. We’re not just talking about the actual cost of the cigarettes you buy, but also smoking’s effect on the premiums you pay for your insurance. And it’s not just your premium for your life insurance that’s at stake.
Smoking is probably the most common cause of residential fires in the world. This is why some insurance companies offer what they sometimes call a Smoke Free credit. This means they may reduce the premium if no one living in your home smokes.
• While we’re on the topic of fires, install smoke alarms as well. Not only do they increase your personal safety, but they may also enable some insurance companies to offer a reduction (usually 2%) on your premium.
• Install deadbolt locks and burglar alarms too. These devices help prevent people from not just stealing from you but also from harming you physically. Some insurance companies offer up to 15% reduction when the burglar alarm includes notification of security or police personnel.
It is possible to secure good property insurance coverage without having to pay through the nose for your premiums. All you need is to determine what insurance you really need, choose a reputable insurance company to provide it, and do the best you can in preventing situations which would actually require the services of an insurance company.