How to Find the Best Deal on Home Insurance

by Mike on July 3, 2012

Home Insurance

Home insurance is an expensive necessity when you own a house.

In fact, if you take out a mortgage on your home, your lender will require that you maintain adequate insurance as long as you have the mortgage.

That is why it is important that you compare the insurance market and find a policy that is best for you, while making sure that you are getting a good deal.

Even if you use a site like http://www.comparethemarket.com/home-insurance/, you still need to know what to look for.

Coverage Types and Amounts

The first thing that you can do to save money is to make sure that you have the right coverage types and amounts for your home.  Many insurance companies rely on the information that you provide them, and so you should be accurate in what you portray.  However, some companies rely on computer programs to decide what the value of your home is, and in some cases it can be way off.  If you find a discrepancy, let your agent know.

Also, make sure that the amount of insurance for other items, like personal belongings and liability coverage, match your needs.  Unless you specify otherwise, many insurance companies simply use a standard 50% of your home’s value for your content coverage – which doesn’t necessarily correlate to the actual value of your belongings.

The Deductible 

A big way to save on insurance is to look at what your deductible is.  Many people prefer low deductibles, but raising your deductible is a great way to save on premium payments.  I would caution you, however, that some mortgage companies don’t allow you to have a deductible above a certain amount of the home’s value (usually 2%).

Other Ways to Save

Finally, there are many other ways to save on your home insurance.  A big one is having an alarm system that is centrally monitored.  Insurance companies usually give a big discount for this.  Other savings can apply to updated fire systems, and other equipment that makes your home safer.  The bottom line is the less at risk your home is, the cheaper your insurance will be.

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