The High Cost Of Home Insurance
Home insurance has to be one of the biggest 'hidden' costs of owning a home. I say that it is a hidden cost because you have to have it, and once most of us choose a policy, we usually stick with for as long as we our house.Most home insurance companies know this and won't go out of their way to save you money.
However all is not lost, you can save money on your home insurance, if you know where to look. But before you do, there are a few key things you need to keep in mind to make sure you only pay for what you need.
1. Cover the full value of your home
As surprising as it may seem 2/3 of home owners don't have enough home insurance to cover the full value of their homes. As long as you have a mortgage you are required to have home insurance, but banks only really care if this amount is enough to repay your mortgage.
However, if you don't want to lose the equity you have built up in your house, you should make sure you covered up to and including the value of your house.
2. Get only necessary coverage
All home insurance policies cover a range of possible disasters, but you need to know which ones. If you live in Southern California you probably don't need blizzard coverage but you probably should have earthquake coverage.
So, you need to pay attention to what types of disasters are likely in your area and get coverage for them. However, it makes no sense to pay for coverage for disasters that aren't going to occur in your area of the country.
Also note, no policy covers flood insurance, so if you live in a flood prone area you need to get separate coverage from the government. Visit Floodsmart.gov for more information.
3. Coverage for valuables
Most home insurance policies have a limit to home much they will cover for valuables. For most home owners this is not a problem because the limits are often high enough.
However, if you have valuables such as antiques or art you should make sure you get a separate rider to fully cover the value of these things. Always find out how much the valuables coverage is in any home insurance policy to make sure it meets your needs.
4. Compare, compare, compare
Finally, the best way to make sure you get the insurance you need without paying too much, is to comparison shop. Most home insurance companies offer different plans at different price points.
Keep what I mentioned above in mind, and it should make choosing one easy.
To make it even easier for you, I have provided a free tool that lets you find home insurance companies in your state that are offering free no obligation home insurance quotes.
Just pick your state below and you could be on your way to saving.
