Insurance may not be the most fun thing to think about, but it certainly cannot be neglected.
There is just too much risk involved.
A person needs to approach the subject of providing their house's insurance well informed and with a determination to do it right.
In this process a person can enjoy not only some peace of mind in case something bad does happen, but might also wind up saving some money along the way.
One of the best things you can do is to be sure and get at least three insurance quotes from different insurance companies.
Don't just go with the one that your friends or family uses, or the one that had the catchy TV commercial, or even the one you've always used.
Many people are quite surprised at their savings when they take the time to get these quotes.
One of the best steps you can take is to install a security alarm system in your home.
Really.
The reason for this is that statistically speaking, you are much less likely to suffer a break-in if such a system is in place.
Not only does that prevent the physical loss and damage itself, but it also prevents the emotional/psychological effects (loss of peace of mind) of a home invasion.
What many homeowners don't realize that a security system can actually end up saving them money.
Since there is a reduced likelihood of break in when an alarm system is installed, insurance companies offer discounted rates for homes with a qualifying system.
These discounts can actually end up paying for the system as well as providing continuing savings.
Another way to realized some savings on your house's insurance is by taking on additional risk.
This is accomplished by adjusting your deductible.
The deductible on homeowner's insurance is the set amount you much pay (annually) before the company begins to pay on a claim.
The lower the amount you must pay (that is, the lower your deductible) the more your insurance premium rates will be.
The higher the deductible, the lower your premium rates.
The key in this is to be sure that you have enough money set aside to cover your deductible.
As time goes on and you can set more money aside, then you can begin to raise the deducible and lower your premium rates.
Very nice.
A very important decision you must make regarding your house's insurance is the kind of coverage you will have.
The two options are cash value coverage and replacement value coverage.
What's the difference in the two? For one, cash value coverage is cheaper.
Before you rush to your decision, though, you need to know why it's cheaper.
Cash value coverage only provides money up to the present cash value of your property at the time of loss.
It may be cheaper now, but cost you more later.
Say your TV is 7 years old and gets fried by lightening.
A 7 year-old TV set isn't worth much, so you wouldn't get much for it with cash value coverage.
But with replacement value coverage, you would get the amount that it would cost to replace your old set with a new comparable set.