Insurance Tips for Homeowners

INVENTORY YOUR BELONGINGS

Make a list of your belongings and be sure to include purchase receipts (the best documentation), especially of large items like refrigerators and stereos, showing the year purchased and amount paid. Photographs and videotapes of your possessions are also a good idea. Preparing an inventory accomplishes two important things. First, it will make the process of filing a claim more orderly and less stressful, should you have a loss someday.

Second, it can help you determine whether some of your more valuable possessions require more coverage than your present policy limits provide. Just make sure you keep a copy of your disk, tape, written list or photos in a separate location such as with a relative, in a safe deposit box or in your desk at work. Gather up as many receipts as possible – especially those for major purchases such as furniture and appliances. Many agents also recommend that you keep a copy of your insurance policy at another location. Remember, do not store these records in your house! Update your list on a regular basis and keep records of any new purchases or remodeling. These records will be very important if you ever need to file an insurance claim.

DISCOUNTS

You may want to ask your agent or insurance company if you are eligible for any discounts. Following are some examples for which discounts may be offered.

• Your dwelling has a burglar alarm system.
• Your dwelling has dead bolt locks.
• Your dwelling is new.
• You have insurance on your home and automobile with the same company.

INCREASE YOUR DEDUCTIBLE

You can lower your insurance premium by increasing your deductible. In doing this you will want to consider how much of a loss you can afford to absorb if you have a claim. We suggest having the highest deductible you can always safely cover in an emergency.

For example, maybe you are always living pay check to pay check. A small $500 deductible is all you could usually afford. This is fine, but understand your yearly premium will be a lot higher because of your small deductible.

On the other hand, assume you always have a few thousand in the bank or more. While no one wants to pay a higher deductible if you have a claim, carrying a $2,000 deductible will save you a lot on yearly premiums. 

KEEP YOUR COVERAGE CURRENT

Check with your agent at least once a year to make sure that your policy provides adequate coverage. You may be able to add an endorsement, which increases the amount of insurance, to keep pace with inflation.

SHOP AROUND (COMPARISON SHOPPING)

The key to comparison shopping is to know what insurance coverages you need before you start and then to find out how much those coverages will cost from a number of insurers. Shop around, you may find substantial differences between quotes. Make sure you are comparing identical coverages when comparing companies.

Be SMART. DO NOT BUY INSURANCE ONLINE by YOURSELF. ALWAYS deal with a real live human!

Make sure you are dealing with licensed agents and companies. You can check the license status of companies and agents by calling your local state insurance regulators.