Your home is the single most expensive property item that you own. It's important for you to maintain a proper amount of insurance coverage on your home. In the event that a catastrophic event occurs, home insurance pays for repairs or replacement of the home. Home insurance also makes sure that contents, plus other assets in your home, are fully covered in the event that the loss is caused by theft, fires, accidents, or other natural disasters. You're also covered when falling trees crash into your home. This kind of coverage is referred to as a standard policy, and you should maintain this policy at all times.
Why You Must Purchase Extra Coverage
Buying extra coverage for possessions such as your jewelry and artwork makes sense, since these items are not always considered to be standard policy items. They will be fully replaced if a total loss occurs. There is also the issue of what happens when your home is destroyed by earthquake or flooding. You're not covered in your standard home insurance policy for these disasters. If you live in areas of the country where the risk of particular natural disasters are a foregone conclusion, then your mortgage company could require that you purchase extra insurance coverage for such policies.
You'll have to purchase earthquake and flooding coverage through the government's national flood insurance program (NFIP). However, your community must participate in the NFIP program. If you live in a coastal community, be prepared to be responsible for a high windstorm deductible for as much as thousands of dollars before the insurance policy starts paying for damage to your home.
Highest Deductible and Other Discounts
There is merit to be gained in choosing the highest deductible that you can afford for your home insurance. Your premium is lower when you choose a higher deductible. Also, take advantage of available discounts that will lower your premium. Purchasing multiple policies from one insurance company will decrease your premium amount. Having sprinkler systems, fire extinguishers, and smoke detectors make you eligible for bonus discounts.
You can also obtain discounts if your home is equipped with deadbolt locks, fire and burglar alarms, and wind-resistant shutters. Upgrades to your home's plumbing, electrical, and heating systems guarantee you discounts on your premium costs. Your age has its benefits, too. If you're 55 years old and retired, ask about this age group's discount that you can take advantage of.
Cut Back on Filing Small Claims
Always bear in mind that you should not use your insurance for too many small claims. Use it only for big expense claims. If you claim too many small claims that amount to a mere $200 or less, your home insurance company might consider raising your monthly premium.
To learn more, talk to companies like McHugh Insurance today.