Often people take out policies with riders on scheduled items like jewelry, but then forget to remove them when they’ve sold the item or no longer own it.
(PRWEB) August 09, 2013
Home insurance protects the largest investment most people will ever make, and many homeowners pay the insurance bill without thinking about the price. InsuranceHotline.com provides the top 10 home insurance mistakes and tips to avoid them.
1. Not Shopping Around. Just like with auto insurance, it pays to take the time to shop around for home insurance quotes. Failing to compare home insurance rates is the most common mistake, especially for new buyers who are anxious to complete the home buying process.
2. Using Multiple Insurance Companies. Home owners who have their home insurance at a different company from their auto insurance are missing out on a major discount. Combining the two is the easiest way to save on both policies.
3. Not Reviewing the Home Description. Home insurance quotes are based on what is known about the house; if the information is inaccurate, the rate could be inflated. Take the time to review the information listed about the home and make certain it’s accurate – it also ensures you are properly covered.
4. Choosing a Low Deductible. There’s nothing wrong with a low deductible, but it’s one of the easiest ways to increase the premium. A higher deductible results in a lower premium, and in most cases it doesn’t have to be a whole lot higher. Over the long term, the higher deductible will save a lot of money, especially if there are no claims.
5. Paying Too Many Fees. Many insurance companies charge fees for paying the bill monthly, but will not only have no fees when the year’s premium is paid in full, they often even offer a discount. Also be aware of fees that might be avoided when bills are paid automatically rather than by mail.
6. Missing Out on Discounts. Many home insurance companies will offer discounts for things like centrally monitored security systems, but they won’t be applied if the company doesn’t know they’re installed. Be sure the insurance company is aware of any additions to the security system that affects rates. Ask for a list of discounts and make sure everything is being applied.
7. Failing to Consider Insurance When Home Shopping. When shopping for a new home it’s important to get quotes before buying. Things about a particular home that could cost on the insurance policy will be revealed before the documents are signed. “Certain aspects of a home, such as construction materials, can have a major impact on home insurance rates,” says Anne Marie Thomas of InsuranceHotline.com.
8. Confusing Market Value with Replacement Cost. Home insurance doesn’t and shouldn’t cover the land, so there’s no reason to pay for coverage on the value of the land. Make sure the policy is covering the replacement cost of the structures – not the market value of the home, which is inflated by other factors.
9. Insuring What You Don’t Have. Often people take out policies with riders on scheduled items like jewelry, but then forget to remove them when they’ve sold the item or no longer own it for some other reason. Check the list of scheduled items regularly and remove anything no longer on the premises.
10. Having Too Many Risk Factors. Things that make insurance companies raise rates include owning a breed of dog considered to be dangerous and smoking in the home. Combine a few risk factors and rates go up quickly. Reduce them, and see better premiums instantly.
About: InsuranceHotline.com is a free online insurance rate comparison service that directs consumers to its large network of more than 30 insurance companies and licensed insurance professionals and provides quotes based on the lowest rates available through its network. In business since 1994, InsuranceHotline.com does not sell insurance, is not a licensed broker, and is not owned in whole or in part by an insurance company, agent or brokerage; ensuring consumers get a truly unbiased quote.