Mortgage lenders require homeowners to carry homeowners insurance. Just as most states require car owners to have insurance. Not only is it for your own protection, but one of the big ones for the lender is that in the case of a catastrophe, your lender will want your home rebuilt.
With proper coverages through your insurer, you will be protected against foreclosure after a hurricane, earthquake, tornado or other.
Homeowner’s insurance policies are comprised of six types of coverage, generally. These six components are:
Dwelling: Covers damage to not only the home but attached structures
Loss of Use: If you are unable to live in your home, this will cover living expenses while your home is being repaired
Personal Liability: Provides any financial protection against lawsuits from damage or injuries which occurred on your property; think trampoline or pool injuries.
Personal Possessions: Covers lost or stolen goods
Medical Payments: Covers medical bills of a person injured on your property
Other Structures: Covers damage to non-attached structures
Your homeowner’s insurance policy may include some, or all, of these pieces. Per usual, the more coverage you keep, the higher your annual premium, but well worth the extra money spent.
There are ways to save money on your policy as homeowners insurance can be a very expensive proposition, but it is essential.
Luckily there are several ways to reduce your homeowners’ insurance cost.
Maintain a home security system, this could lower your premium by up to 10%
Install a smoke alarm; although standard in new homes, installing them in your older home can also save you 10% on your premiums.
Another way to save is to raise your deductible; the higher your deductible the lower your annual premium.
Another tip is to look for multi-policy discounts. Many insurance companies give 10% or more if you have additional policies with them.
Did you know if you pay off your mortgage your home insurance will go down? Insurers assume that since you have paid off your home that you will take better care of it.
Senior discounts are also eligible, these are sometimes called senior discounts, age preference policies, mature policy discounts, so if you are over the age of 50, it might be worth asking if you qualify.
Finally, it is always a good idea to verify that you have all of the coverage you need, review your existing policy and assure that you have all of the coverage you need.
Homeowners insurance, like mortgage rates, varies between companies. Be sure to comparison shop for the best rates and programs which meet your household needs.
The Certo Team 55 N. Arizona Place Suite #103 Chandler, AZ 85225 602-429-6789
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