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Homeowner Insurance - Mistakes That Can Cost You a Lot of Money
Author: Chimerenka Odimba
In our bid to have our homes fully covered which by the way is something everyone should make sure of, many of us have made some mistakes that have resulted in our losing some significant sums of money. Whether we know this is or not, it is true. We would look at some of these mistake so you can correct them if you made of any of them.
One very common mistake especially for those very very serious about having full coverage of their homes is eventually having their homes over covered. Is it possible to have your home over covered? Yes!
Many people add the value of the land to the cost of the building is this correct? If a disaster occurred that required that your home be rebuilt, would the land be paid for again? No! But you have been paying for the cost of the land in your premium so you were over covered.
Imagine that the cost of rebuilding your home is $150,000 and the cost of the land is $40,000 and you have been paying premium on the entire value of both the building and the land which is $190,000. If you were to make a claim, your insurer would pay for the rebuild which cost they would make sure of. So you would have lost some money.
Insure your land only if the land itself is in danger.
Many people think they are smart when they choose a very low deductible. This is one place you can make tremendous savings. When you choose a low deductible on your home insurance, the monthly premium you would pay would eventually make whatever savings you think you are making useless. Set your deductible to as a high as is sensible. This is very important because if you set an outrageously high deductible just because you want to pay tiny amounts as premium, when you make a claim, your insurer would not act if you have not paid the deductible so you need to choose as high as you are sure you can pay. The higher you set your deductible, the lower your premium would be.
In today's world, not taking time to get free home insurance quotes for comparison is a sure way of paying too much for your home insurance coverage. In fact, we recommend that you compare free home insurance quotes every 6 months to be sure you are not being ripped off by your insurer.
With the competition amongst insurance companies today, it would almost be a crime if did not get all the savings you can by comparing quotes. You would actually be surprised at the savings you can make.
How do I start my quotes comparison?
Here are two very good sites to start getting your quotes.
Home insurance Quotes
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