Insurance tips for homeowners

by | Mar 11, 2013 | Finance & Loans

Very few, if any, mortgage companies will make a home loan if the property is not covered by homeowners insurance in Dexter MO. The face value of the policy must be for at least the fair-market value of the property. Depending upon the risks associated with where the property is located, the premiums for the same cover can vary considerably. If the property is located in a high-risk area, such as where there are known earthquake fault lines or in the path of hurricanes, it will be much more than the same coverage in a more mundane area.

There are ways to minimize the cost regardless of the risk associated with where you live:

1. Maintain smoke alarms and a security system: An alarm system which is monitored offsite, which in turn is connected directly to a police station, will help keep the homeowners policy premium in check. The deductions can range from as low as 5% to as high as 20%. To avail of the deductions, it is the homeowner’s responsibility to prove the presence of central alarm monitoring.

2. Smoke alarms are also a benefit, not only to the safety of the residents, but to the premium of the homeowners insurance in Dexter MO. Installing these devices can easily save 10% on the annual premium.

3. Raise the deductible: Similar to auto insurance or health insurance, the higher the deductible, the lower the premium. The only problem with specifying a higher deductible is that such things as broken windows or water damage, things that will cost less than the deductible will have to be paid for directly by the homeowner.

4. Multiple policy discounts: many insurance companies offer a handsome discount to customers who hold more than one policy with them. A discount of perhaps 10% will be considered if auto, health and life policies are all held by the same company. The discount may also apply to the other policies in the bundle for further savings.

5. Plan ahead: if the homeowner has the intention of adding rooms to the house, or building another structure close by, consider using fire-proof materials. Wood-framed structures cost more to insure than structures, which are constructed from concrete or steel.

6. A homeowner should also consider the wisdom of adding a swimming pool or other features which constitute a danger. Although the pleasure of having these things may be worth the price, the cost of insurance can easily go up by 10%.

7. Pay off the mortgage: For many, this is easy to say and hard to do, but if possible, do it. The insurance company believes that when the home is fully paid for it, the owners will take more care and reduced risk is the result.

The policy that is held should be constantly reviewed. It is a big mistake to just renew year after year. You should not be concerned with getting new proposals, and you should be looking at things that change from year to year. If one year you do not have smoke alarms and the next year you do, look for a discount.

For homeowners insurance in Dexter MO you are invited to contact Mitchell Insurance. The company can offer multi-policy discounts in an effort to keep your premiums under control.

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