You know you need homeowners insurance to protect your home and your belongings. But do you know how much to buy, what it covers, and how to save on your premiums?
How Much Homeowners Insurance Should You Buy?
You need to consider two major factors:
* How much it would cost to replace your home if it were completely destroyed. You can get an estimate from a local builder or real estate agent to figure out this amount.
* How much it would cost to replace your belongings. Doing an inventory and totaling up the value of everything you own will help you determine this amount.
What Does Your Homeowners Policy Protect You Against?
Your homeowners insurance policy protects your home and your belongings against damage from:
* Wind and hail
* Fire and lightning
* Vandalism and theft
* Smoke and plumbing leaks
It also protects you if someone is injured on your property, and it pays for your living expenses if you need to live somewhere else while your home is being repaired.
How Can You Save On Your Homeowners Insurance?
There are several ways you can help reduce your premiums:
* Keep your credit record clean. People with poor credit pay more for their policy than those with good credit.
* Get discounts. You may qualify for discounts if you’re a non-smoker or a senior citizen, or if you install smoke detectors, sprinkler systems, or deadbolts in your home. Ask your insurer about all the discounts you qualify for and include them in your policy.
* Set your deductible as high as you can afford. The higher your deductible, the lower your premium.
* Shop rates on an insurance comparison website. Homeowners rates can vary dramatically from company to company. You can get rate quotes from multiple A-rated companies just by filling out a simple form on a comparison website. On the best comparison websites, you can even talk with experts online to get answers to your questions and advice on how to save money on your premiums (see link below).