Home Insurance: Advice For Maximizing Your Protection

Home owners insurance or, as it is also known, home insurance, is the insurance designed to cover the costs of repairing your house and any personal property contained within.  Ideally, you would be able to find an affordable policy that also meets all your needs. However, it isn’t always possible. You can still save money by maximizing your protection – in other words, getting as much coverage as you can out of your current policy.

Find Insurance Discounts

The best way to get more out of your insurance is to get as many discounts as possible. Most insurance companies offer a variety them. The purpose of those discounts is to encourage you to take fewer risks. The insurance companies prefer policyholders who rarely use their policies (if it all), because every filed claim costs the insurance company money. That is why they will reward you with discounts if you take certain steps to protect yourself and your house. For the most part, the discounts can be divided into two categories.

  1. Home security discounts – Discounts you can get by taking steps to make your home more safe and secure. Depending on the policy, this can include anything from installing deadbolt locks and burglary-resistant windows to installing smoke alarms and a security system. You can get discounts simply for buying a fire extinguisher. You can also get discounts for making your house more fire-resistant, water-resistant or generally tougher. More recently, some insurance companies have been offering discounts for making the house more energy-efficient.
  2. Good behavior discounts – Discounts you can get by taking steps to take care of your health. You can, for example, get discounts for abstaining from smoking. This category also includes discounts for less direct ways to take care of your health, such as maintaining a clean driving record.
Get Rid of Unnecessary Coverage

Look over your policy. Does it cover anything you don’t need? For example, if you don’t have any freestanding structures on your property, there is no reason why they should pay for other structures coverage. On the other hand, you shouldn’t be too eager to get rid of every seemingly superfluous type of coverage. Consider the long-term benefits. For example, you may think you would not need loss of use coverage – the coverage that covers any extra living expenses while your home is being repaired – but as aftermath of Hurricane Katrina so vividly illustrated, you may never know when you might need to leave your home. You should approach your benefits with prudence and pragmatism. Consider every type of coverage carefully, but once you decided that there are some types of coverage you won’t need, eliminate them without hesitation. 

blog comments powered by Disqus