State law in New Hampshire does not require people who own their own homes to buy homeowner's insurance. But if your home is financed, which means you pay a mortgage every month, your mortgage holder will make you buy homeowner's insurance.
Keep in mind, though, that you don't have to buy homeowner's insurance from a certain company. You also don't have to buy insurance from a company that your mortgage holder owns or recommends.
Still, most people who own their homes choose to insure what is, for most, their biggest investment and one of their best assets. This is true whether or not they have a mortgage. It only makes financial sense to get this kind of insurance.
Even though it makes good economic sense to buy homeowner's insurance, it also makes sense to save money and get cheap homeowner's insurance. So, what can you do to lower the amount you pay each month for your homeowner's insurance?
First, make sure that all of your major policies are written by the same company. If your home insurance, car insurance, and health insurance are all written by the same company, you should get a discount for having more than one policy with them.
Don't skimp on the size of your insurance policy. Your policy needs to be big enough to cover the full cost of rebuilding your home from the foundation up in today's dollars. Check with a local builder or a real estate agent with a lot of experience to find out how much your home should cost to replace. But don't get insurance for the value of the land your house is on.
When a company writes a homeowner's policy, fire and theft are the two biggest worries, so it makes sense that reducing these two risks would also lower your monthly premium.
Brush, weeds, and trash should be cleared at least 10 feet away from any building on your property.
Put up outdoor lights that turn on when someone moves. Thieves like to hide in bushes near windows and doors to avoid being seen.
Make sure that every exterior door has a deadbolt lock that works, and that every window, even those on higher floors, has a lock that works.
Buy and install the number of smoke and fire detectors that are recommended for your home's size and layout. Make sure that all of the detectors have new batteries and that they all work. Every year, batteries need to be changed twice. Many people change the batteries in their smoke and fire alarms on the same day they move their clocks forward or backward twice a year.
Buy a fire extinguisher for your kitchen that is the right size and type.
Even your credit score can have an effect on how much your homeowner's insurance costs, so if there is anything you can do to improve it, now is the time.
Once you've taken care of everything that can affect how much your insurance costs, it's time to go online and find two or three websites that let you compare different policies and their prices from different insurance companies. Fill out the forms on more than one site so you can make sure you're comparing all of the New Hampshire homeowner's insurance companies.
Comparing policies and prices on multiple sites takes more time and work, but in the long run, you'll save money every month thanks to the time you put in.
