Your home is your sanctuary where you can do everything that you want. However, owning a house can be the biggest investment that you make. Aside from your mortgage, taxes and bills, your home’s insurance can also cost you more than you’ve expected.
Let’s face it, it’s never fun to pay for insurance until the time comes that you need it for repairs around the house. To make it easier for you, there are ways to save money while still getting the best type of homeowner’s insurance.
This article will teach you more about the smart ways of staying on top of your homeowner’s insurance rates as well as tips on how to save money on your premiums.
Tip #1: Not Everything Is Covered
You may feel safe because of your existing homeowners insurance but you need to know that it doesn’t cover everything. In most policies, the fine print would read that the damages to be covered should occur due to an event that is accidental or sudden. This means that if the damages came from an existing hole in the roof, your insurance may reject your claim.
It’s also good to take note that natural disasters like heavy floods or earthquakes are not part of your standard home insurance. These disasters occur suddenly and are unexpected, but they also require a separate insurance to be covered.
If you own valuables like jewelries, firearms or other expensive items, you need to know that most insurance policies have caps for its coverage. If you want them protected at all costs, you need to raise the amounts of their coverage as you see fit.
If you want to save yourself from unexpected expenses, the smart thing to do is to talk to your insurance agent and ask them to add flood, earthquake, mold and sewer back-up insurance to your existing policy or find out what other options may be available to you.
Tip #2: Your Credit Score is Important
Your credit score can affect your premiums just as much as it can affect the interest rates that you pay for your credit card loans. A recent study revealed that those with fair credit scores can pay over 30% more for their home insurance compared to those who have an excellent score. On the other hand, someone with a poor credit score can pay double for their premiums.
Tip #3: The Number of Claims You Made Matters
You don’t really want to use your home insurance as much as possible. However, not many people know that filing an insurance claim can make your insurance rate go up for a long period of time.
Insurance companies sees policyholders who already made their first claim as those who would also make succeeding claims. This is why they raise your rates in anticipation of future claims. Based on the area that you live in and the type of insurance, your premium can increase up to 9% after your first claim.
If you want to avoid this, think carefully if you really need to file a claim and if it’s worth having your rates go up.
At Wellcovered Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (386) 218-4951 or Click Here to request a free quote.