Monthly Archives: April 2016

7 Ways To Spend Less On Your Home Insurance Policy

Property is a prized possession, and to safeguard it from unexpected damages in the event of fire, flood, earthquake, etc. getting a home insurance is always necessary. However, if your existing health policy is exhausting your monthly income, listed below are a few sure shot ways with which you can control your home insurance costs:

1. Shop around: The decision of buying a home insurance policy should not be taken in haste. Instead, you must explore and make a list of insurance policies that are being offered by various insurance providers. You may also get insurance quotes online to estimate the costs of different policies. Choose a reliable company from which you can buy the comprehensive home insurance plan that suits your needs, and of course, your budget.

2. Increase your deductibles: Deductibles is the fraction of the claim that you have to pay before your insurer pays the claim as per the terms of the policy. The higher the deductibles you set, the lower premiums you will have to pay every month. However, you must set the deductibles as high you can afford.

3. Locate intelligently: Purchase the property in a strategic location but make sure that it is based away from the damage-prone areas. Reason being, if you live in a disaster-prone areas where flood, storm or earthquakes are a common occurrence, there are chances that your home insurance policy may have a separate deductible for such kind of damages.

4. Avoid making small claims: This is the most common mistake that many people make. You exhaust your policy in small claims thus leaving no room for bigger loss protection. Rather it is advised to deal with smaller issues on your own and keep this policy to protect your home from bigger catastrophic losses.

5. Improve home security: To avoid getting your home damaged from little mishaps, it is suggested to increase the security in your home by installing devices like smoke detectors, burglar alarm, etc.

6. Merge Policies with one Insurer: Just like you pool your internet, phone, and TV package, you can also merge your insurance policies with one insurer. Buy your health insurance, homeowners, life, and auto insurance plan from one insurance company and come out cheaper by bundling these insurance products together. You may also buy policies in a package that is less expensive as compared to single policies. It also liberates you from the trouble of policy renewal.

7. Eliminate Unnecessary Coverage: Don’t buy the coverage you don’t need. Like earthquake coverage is often unnecessary in most zones, don’t include jewelry if it is at a catchpenny price etc. Also exclude a land value from your policy. Covering land on which your house is constructed is simply of no use as it is unlikely that your land will be stolen or burnt is fire. So to save big, insure the value of your home only.

There are many insurance providers who offer age and profession discounts as well. Some times there certain discounts for retirees and people with good credit rating. Never eliminate the coverage that is important just to save your money as spending extra on important services will benefit you in the long run.

Understanding Why You Need Renters’ Insurance

You may have moved from your parents’ house into an apartment or perhaps recently graduated from school getting your own place for the first time or you may have decided to rent a house rather than own. You have lots of items on your “to do” list and getting renters’ insurance may not be a high priority. A lot of people don’t feel they need this type of insurance because they don’t own “much” or feel they have nothing to lose. There are several good reasons why you really do need this type of coverage.

There are two main coverages provided by a Renters’ policy (aka: tenants insurance.) The first is coverage for loss due to fire, theft, etc. for your personal belongings. Most people don’t realize how much they own. If you had to replace everything that you own, every piece of technology, article of clothing, furniture, sports equipment, etc.; it could create a financial hardship that would take time to recover from.

The other coverage that is even more critical is your personal liability. Here are some major considerations that you may not currently understand about this coverage:

· What happens when you play sports and accidentally hit another person with a baseball or golf ball, etc. Who do you think will pay for the medical expenses and loss of earnings for example for that person? What if you take an airline flight and accidentally hit someone with your carry-on luggage while taking it out of the overhead bin? Your first thought may be- “Let them sue me – I don’t own anything!” There are a couple of problems with that thought process. First, it is just morally wrong and second, you not only have your current assets at risk. Your future wages could be at risk as well. If you were to be sued, could you afford to defend yourself and pay the judgment that could follow?

· Another issue that you may not have considered is causing damage to your landlords’ property. We all do things unintentionally. You could leave a stove burner on, leave candles burning that you forget about or leave the water running in the tub while you answer the telephone. Damage caused to your unit or units above and below you caused by your negligence could be your responsibility.

· Most people may not have had experience with having a loss or just don’t think it will happen to them. Unfortunately, it happens all the time! I recall a renters’ policy loss where the tenants left candles burning and caused hundreds of thousands of dollars to the house they were renting.

Most insurance carriers provide discounts for having multiple policies with the same company. You may qualify for a discount on your auto insurance too. The cost of renters’ insurance is probably a lot less than you think! Contact a good independent insurance agent to find you the best coverage appropriate for your situation giving you the best value for your premium dollars.