Copywritten by Stacey Zimmerman in 2006.
When you get a mortgage on your home, the lender will want to see proof that you have homeowner's insurance. The lender wants to make sure that their money is safe. But you should have homeowner's insurance to protect yourself in case of a loss, whether or not you have a mortgage on your property.
When getting homeowner's insurance, the biggest mistake most people make is to buy coverage they don't need. For example, if you live in a high-up area, you shouldn't have to have flood insurance. Many homeowners have to pay for flood insurance even though there is no chance of flooding. But if you live in a place that is prone to flooding, you should make sure your property has this extra flood insurance.
You should also check how close you live to a fire hydrant and the fire department. If you live close to either of these, your rates could go down by a lot. If your insurance agent doesn't ask you for this information, make sure to give it to them so they can see if it could lower your rates.
If you are like many homeowners, you may have your life insurance with one company and your auto insurance with another. If all of your insurance policies are with the same company, you could get a discount of up to 20% on your insurance rates. You might also ask your insurance agent how much you can save by raising your homeowner's insurance deductible.
You can also save money on your homeowner's insurance by asking what discounts you could get if you made changes to your home. You may be able to get several discounts if you add security features like an alarm system or even just double locks on your doors and windows.
If you have a dog, you should let your insurance agent know. Unfortunately, if your dog is on the list of dangerous dogs, your insurance rates may go up or you may not be able to get insurance at all. To keep yourself safe, though, you'll need to talk to them to find out how your dog fits into the picture. You may end up taking extra steps to keep your dog safe. Your rates may go down if your dog has a large area that is fenced in.
Renter's insurance is another important thing to think about. This only applies to you if you rent out part of your home, but it will protect you and your renters if something like a fire or theft happens in your home. Before moving in, many landlords ask their renters to show proof that they have renter's insurance. If they don't have renter's insurance, you may have to pay for the things they lose.
To save money on your homeowner's insurance, the most important thing you can do is to compare prices once a year. Make sure to tell your insurance company about any changes you've made to your property. Insurance companies and their rates change quickly, and if you've been with the same one for a long time, you might be surprised at how much you could have saved.
