TUESDAY, SEPTEMBER 13, 2011
Homeowner’s insurance isn’t a luxury but a necessity. A lot of mortgage companies will not give out a loan or finance a real estate transaction unless a buyer gives proof of coverage for the fair value or full insurance of the property. Shopping for a home insurance coverage is perhaps one of the nagging home buying details that oftentimes manage to slip through the cracks.
 It is pretty normal for insurance agents to receive frantic phone calls from escrow companies asking for a home insurance binder. Here are some of the things that you need to consider when purchasing a home insurance policy to help you save time and money.
Determine the insurability of your home.
An insurance agent will need a lot of information about your house to come up with the best quote. To determine the insurability of your home, the agent can ask:
• The year the house was built
• Type of roofing
• Square footage
• Location
• Claims that have been filed over the last five years
• Plumbing and electrical systems
Save by choosing a higher deductible.
Save money by getting a higher deductible on your policy. Insurance firms may start giving discounted rates at a $500 deductible. There are companies that offer deductibles up to $10,000. However, most mortgage firms don't allow you to exceed the $1,000 deductible so make sure you check with your lender first.
How much home insurance do you need?
If you purchase a home that has a large lot, then expect to receive an insurance policy that is less than what you paid for the house. The replacement cost coverage means that every insurance firm designates a percentage aside from the insured amount. This is made to protect a homeowner who has suffered a loss from paying construction cost to rebuild.
Know your policy options.
There are parts of your insurance policy that can be tailored. The liability coverage is a part of a homeowner’s insurance policy that is often overlooked. This coverage protects the insured against various claims from physical injury and property damage to other people. For example, if your kid plays with matches and sets your neighbor’s property on fire, the liability coverage will pay for the damage done.
Know all the discounts available.
Get all the credits for which you are eligible. If you have an alarm system, you can get up to 10% discount. Insurance firms have various names for age-preference policies like a senior discount or mature policy holder. Multi policy discounts are also popular and involve combining two policies within the same company. For instance, you can have your home and auto insurance under a single company.
Be sure you know all there is to know about your Louisville homeowners insurance by asking the agents at Claude Reynolds Insurance. Find out how much we can help you save on your home insurance!
By Matt Reynolds - Google+
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