Affordable home insurance is important, because your house is one of your biggest investments. Every homeowner with a mortgage is required to have coverage, and even if your house is paid off in cash, you will want to protect it with quality, cheap homeowners insurance. Of course, no one wants to imagine that they will experience a house fire or a hurricane, but it can happen, so the smartest financial move is to always be prepared.
Home insurance covers the following basic things (and may include other items not listed here):
Your home is covered, as well as attachments like a garage. The outdoors like landscaping, trees, etc. are also usually covered. Other buildings or structures on your property are also included (such as a shed or pool house).
Your policy covers living expenses if you are unable to reside in your house due to a fire or other disaster.
Sometimes your insurance will cover a portion of the medical expenses if someone is injured on your property.
Your policy will typically cover lost possessions (especially those of value) such as jewelry, electronics, and other valuables up to a certain amount. This amount will be stated on your policy.
What are some ways you can save money on homeowners insurance?
First, you will want to be sure to compare rates on homeowners insurance. The best way to find affordable home insurance is to get a number of quotes to choose from.
You may want to consider combining policies. For instance, it may be cheaper to get your car and home insurance through the same insurer. This called a multiple policy discount.
Another way to save is to make sure your home is secure and resistant to disasters. In plain language, this means that you will get a better rate if your home has a fire sprinkler system, security monitoring, and even simple things like good storm shutters or a modern heating system.
Staying with the same insurance company over a long period of time may reduce your premiums. This is called a “long-term policyholder discount.” This may reduce your payments by up to 10%, but you should still compare rates with other insurers periodically to make sure you are getting the best rate.
Affordable home insurance is important for every homeowner. Make sure you understand your coverage, and do what you can to save money on homeowners coverage.