This article is about homeowners’ insurance, a topic that is especially crucial to me as a recent homebuyer. According to GoodHouseKeeping, there are several simple ways to navigate this complex field.
Firstly, don’t hesitate to shop around. Despite the anticipation of a downward trend in car insurance rates, homeowners’ insurance premiums may experience an estimated rise of 4%. Consequently, it’s worth comparing prices. Websites that provide car insurance quotes can also offer homeowners’ insurance rates online.
Secondly, inquire about discounts. You could get a discount of around 5% from many insurance companies if you’ve installed things like burglar alarms, smoke detectors, or deadbolt locks. Older individuals or families without smokers may also receive discounts.
Thirdly, be careful not to over-insure. If your coverage equals the amount you paid for your house, you could be over-insured. Remember, your purchasing price included land value, which does not need to be insured even in the case of total property loss. Adjust your policy to reflect the rebuilding cost of your house. At the same time, you could save by removing coverage for items that have depreciated in value. Nonetheless, avoid under-insurance. Construction costs have been on the rise due to increasing demand. If your policy amount hasn’t kept pace, in the unfortunate case of a fire, hurricane, or flood, you could fall short of the rebuilding cost. Consult your agent regarding the right amount of coverage, and consider raising the deductible to manage costs.
Lastly, choose your new home wisely. Coastal properties can be dreamy, but they often come with higher insurance costs. This is especially true in hurricane-prone regions, with insurance premiums predicted to increase 20 to 100% this year, according to the Insurance Information Institute. The situation is expected to worsen, with many insurers not renewing policies for coastal homes. The emerging trend of “insurance refugees” – those who can’t afford coastal coverage and thus opt to relocate inland – is especially noticeable in Florida. Clearly, ocean views come at a heavy price.
