Monthly Archives: March 2016

Tips to Find Home Insurance at an Affordable Price

Buying Home insurance can always be termed as a good decision since it gives you appropriate financial cover in the event of theft, damage, robbery, earthquake, storm, or more. However, many people do not think of it as a necessity and often avoid purchasing it so as to save their money.

Keeping in mind the benefits associated with home insurance, the price cannot be considered as the best comparison point. After all, it just doesn’t cover for your home but also for your belongings and gets you monetary aid even in the case when you’re liable for third party injury or property damage.

Though there are numerous factors that determine your policy rates, the most obvious ones include the location of your property, its age and construction type. Newer homes in areas are less prone to damage, natural disasters and crime, and are also cheaper to insure. This definitely is something that you can’t control, but there are certain other ways that can make you eligible to get cheap home insurance. Read on:

1. Shop Around: Like everything else, you need to shop around to find the cheap home insurance. Online websites and tools can help you a lot in finding the best policy. You can even compare two and more policies online to pick the most suitable one for you. Never assume that a certain insurance firm offers cheap home insurance that clicked for someone in your friends and family, for your needs and situation can be entirely different from theirs, and so the same policy may not be the best option for you.

2. Bundle your policy: Rather than buying a home insurance policy from a separate provider, consider bundling it with your existing insurance provider – for instance, home, car, and life – with the same company. This way you’ll get a discount for having multiple policies with the same company.

3. Don’t over insure: When it comes to buying a home insurance policy – homeowners try to get cover for anything and everything for obtaining optimum protection. However, it is advised to get coverage only for what you actually need. Also, try to get insured for how much it would cost to rebuild your home, not re-buy it. This is an important factor because market value considers the location of your home and value of your land. Your homeowners’ policy would not pay for any damage caused to your land.

4. Consider a higher deductible: You can opt to pay a higher deductible in order to pay off the entire insurance premium at the earliest. This will not only help you get better cover at the same price but will also let you get better rebates when filing your taxes.

5. Add safety features: Integrating safety features such as deadbolts, smoke detectors, fire extinguishers, etc. may get you good discounts on premium payment. If your home is located in a disaster-prone area, check on the special modifications you can make to further reduce your premium.

6. Check Your Credit Score: Poor credit scores not only affect your ability to get a loan but can also lay an impact on your insurance premium. Let’s say, if your credit score is low, you may have to pay a high premium value. Work towards bettering this score by making your payments on time and maintaining a good banking transaction record. This will in the course of time improve your credit score, which will lead to you needing to pay a lower premium in future.

All in all, opportunities to find the cheap home insurance are all around you. You must, for your part, take time out to find out the most suitable policy as per your need, which will enable you to save considerably more in future.

A Homeowner’s Guide: Insurance Scores Explained

Do you understand insurance scores and its relevance on your policy’s premium?

Here’s the classic illustrative example:

Barbara and Gail are neighbors, living just houses away from each other.. Barbara lives on the corner property on Farms Road, while Gail lives smack in the center of Farms Road. Both women marvel at how similar their homes look on the outside. They chuckle at the personal joke they share about the interiors.

“If not for the vast difference in home decorating tastes,” says Barbara with a broad grin, “we’d live in identical looking homes and our kids would mistakenly enter the wrong house when returning from elementary school!”

The joke kept smiles on their faces until they discovered a serious difference in homeowner policy cost. Gail was paying a premium of $1,300 on her homeowner policy while Barbara only had a premium rate of $700. Gail couldn’t believe the fact that the price tag on her home insurance plan was $600 more for coverage on a very similar home from the same independent agency.

Gail was desperate about getting to the bottom of the enigma so she drove to the agency’s office immediately after work one day.

As soon as she met the broker, it was clear he knew his facts. He proceeded to lay everything on the table.

Although Gail’s home matched Barbara’s in size, layout and look, there were numerous reasons why her premium was so much higher.

It boiled down to Gail’s insurance score which reflected numerous things:

• Gail was a landlord who rented out her basement and collected rent for it
• Gail had submitted previous home damage insurance claims to the insurance company
• Gail’s credit score ratings were quite low, certainly not as good as Barbara’s

Despite the fact that Gail still had to contend with her $1,300 insurance premium, she understood the reasoning behind the spiked difference she paid in relation to Barbara.

Contemplating her situation on her way home that evening, she marveled at the fact that two homes could be almost identical and still so very different. She knew now that nothing pertaining to the insurance industry is clear cut. Though the layman can perceive something one way, it is the professionals who know all associated matters. If there was one lesson to be learned it was the importance of having a professional answer your questions.

Now it was time to smile again!

Things to Remember When Buying Cheapest Low Cost Home Insurance

Home Insurance for Buildings

This will cover the actual building, but not necessarily outbuildings such as sheds, or garage, or fences. Having building insurance cover is usually a condition of the mortgage for home owners.

If looking for cheap home insurance it is worth remembering that a lower price it may mean a higher excess, which is the amount you have to pay before the insurance cover kicks in.

Questions to ask include whether cover includes the cost of alternative accommodation should the building be so severely damaged that it cannot be lived in while repair work is carried out. It may also be worth asking about whether the policy includes legal fees, as this is usually an extra item.

Another extra on home insurance policies that may be worth considering is emergency cover which provides for immediate, urgent repairs to make a property safe or weather proof if there has been some unexpected event that has caused damage.

If you want to pay by monthly instalments how much extra is the policy going to cost? It may be that what at first sight looked like cheap home insurance quotes are not quite so cheap once you add in the extra cost if the insurer charges extra for monthly payments.

The policy may also have exclusions in the fine print where certain types of damage are not covered. Again this is something that should be checked.

Contents Insurance

These policies may also have both an excess and exclusions but should cover both accidental damage and theft. Many people underestimate the replacement value of their possessions so it is worth making a list of everything you own, from jewellery to furniture to the contents of the loft, garage or freezer then you will be able to come to a more realistic value of your possessions.

Remember also, that insurers are likely to reduce the amount paid out on a claim for loss or damage of possessions for “wear and tear”. It will not necessarily be the full cost of replacing items with new ones.

Buildings insurance is usually required by mortgage companies as a condition of lending and we all want our essential monthly outgoings to be as low as possible.

So the first rule for ensuring cheap home insurance is to shop around and not necessarily to use the insurer recommended by the mortgage company.

If low cost home insurance is what you need there are other ways to ensure it is as cheap as possible.

Firstly, inadequate door locks can increase the cost of cover. It is worth ensuring that all exterior doors, both front and back are fitted with five-lever mortise deadlocks which are considered to give better protection from burglary. Windows, too, should be fitted with secure locks.

Secondly, keep up to date with home maintenance. Insurers are more likely to consider offering low cost home insurance if the property is kept in good condition. It is also true that what started out as a small repair in the early stages can turn into something large and expensive if it is ignored and allowed to deteriorate so that the damage spreads further afield.

To maintain consistently cheap home insurance, take steps to protect the building from damage. Loft and cavity insulation, for example, can not only reduce heating costs but also keep the building at a temperature where there is less risk of burst pipes in a particularly freezing winter.

Keeping guttering and drains clear and clean will also help to prevent damage to the fabric of the building.

Subsidence is another issue that can be difficult and expensive to correct and can do extensive damage to a building.

The two main causes are collapsed drains and tree roots that can undermine the foundations.

Large trees near to a house can be particularly deadly if there has been a dry summer and the ground has dried out and shrunk because a thirsty tree has sucked out more than the usual amount of moisture. While trees can be an attractive feature in a garden it is better to ensure they are planted far enough away from the house that the roots – which can spread further than the above-ground canopy of the tree – are not within reach.

Many towns in the UK have rows of old terraced streets. They can be attractive places to live, offering slightly more interior space than a new build but they can also require more maintenance, which is fine for DIY types with the skill to do the work.

One vulnerability, however, is that their underground pipework is generally made of earthenware if it has not been replaced with more modern pipework made of flexible, plastic materials. Over time, old drains will collapse, leading to underground leakage and damage to the foundations of the house.

Finally, homes are more vulnerable to burglary at Christmas when there are expensive gifts around, so it is worth looking for a contents policy with unlimited cover to allow for the risk.

Selecting The Right Deductible

If you are a professional of any field, it is very necessary that you carry adequate protection just in case you have to file an insurance plan claim. When you don’t have enough protection to protect you against any suits that might be filed against you, your business could be at stake. This is the main reason why you are attempting to look for a professional liability insurance coverage, and are trying to work on finding the best deductible.

Prior to your plan of having any kind of insurance for your business, you have to first evaluate your urgencies. You have to consider the risks your business may possibly attain, the dilemmas you have encountered in the past years, and if you will be having more business deals which needs careful attention. If you think that your business will be filed a lawsuit and that it could be a relatively large amount of money, it is very necessary that you own adequate insurance coverage to protect that potentiality.

Now you have to consider the money you have in your pocket. How much money does your enterprise have reserve to invest for the insurance protection? Remember that your professional liability insurance protection is tax deductible, however you still need to pay. If you know the amount of money set aside then you can pay for your insurance protection and this will enable you to have a much easier way of choosing the perfect deductible.

After you know the amount of money you carry for your insurance protection, you have to begin looking for plans that fall in your criteria. You can have cheap plans if you have a bigger deductible. This refer to your finding out of the amount of coverage you prefer and know how high of a deductible you need to compensate in order to fit the premium to the budget your business set aside.

Prior to deciding on a deductible, you have to make sure first that you will be able to pay the deductible in the event somebody files a suit against you. You have to accept the fact that you may be hauled into court in the near future.

If you are getting an insurance plan, it is very important to read every portion of the plan. It may be very tiring and difficult to read through because it is very long, however this is something that is very necessary. You may want also to take the policy documents to your lawyers before signing all of them. This will make you rest assure knowing that you have gotten the protection that you require.