Everyone who has purchased a house with a mortgage loan knows that it is compulsory for you to to have the property insured.
Your mortgage provider wants to make sure that their investment is well protected.
It is good to note that even without your mortgage provider demanding it, it would simply be foolhardy not to have your home covered.
Your concern should however be knowing the amount of cover you have and need and how to get it cheaper.
It would really be wrong if you just got an insurance cover just because your mortgage agreement demands it without knowing the details of the coverage.
I expect though that your mortgage providers would want to know the extent of the coverage.
It is very important that you know the full extent of the coverage you have chosen.
Many homeowners do not understand that a home insurance policy could cover some damages and not cover another.
It would be very erroneous to assume that everything is covered in your home insurance policy.
You need to take the time preferably before taking out the policy to find out the full extent of the coverage and limitation or exclusions as they are usually termed.
When you know what is covered and what is not in a policy, you would be better able to decide whether or not to go on with that policy.
Knowing this also helps when you are comparing quotes.
There are a few ways for you to lower your rates.
Some of these, you need to confirm for yourself and also compare with other insurers.
Many insurers would give you a discount for having multiple policies with them.
So if you check with an insurer and the discount they would give you for having your auto, home and other insurance policies with them is substantial enough to make a difference then you just might take out multiple policies with them.
You need to be sure that the discount is actually worth it because you could discover that some insurers would give you very low rates for your home insurance coverage while another would give you a low rate for another of your policies and so on meaning that you end up having a sum of low rates from different insurer amounting to very substantial savings.
Be very careful with this.
One of the very first things you need to note is that your deductible is very important.
A high deductible result in a lower premium while a low deductible would mean a higher premium.
However it is very important to note that though we advice you to choose a high deductible to achieve a lower premium, the deductible you choose MUST be something you can pay because if you make a claim, you would have to pay the deductible before the insurer makes good on the claim.
In choosing a deductible, go as high as is reasonable knowing that this amount would come from your pocket.
To really enjoy low rates, you need to get and compare as many free quotes as you can.
This gives you an unfair advantage.