This article focuses on homeowners’ insurance, a topic that’s been on my mind a lot since I recently bought a house. Here are a few simple tips from GoodHouseKeeping on how to navigate this complex field.
First, don’t be afraid to shop around. Even though car insurance rates are expected to drop, homeowners’ insurance premiums might go up by about 4%. So, it’s smart to compare prices. You can use websites that give car insurance quotes to also check homeowners’ insurance rates.
Second, ask about discounts. Many insurance companies offer discounts, around 5%, if you’ve installed things like burglar alarms, smoke detectors, or deadbolt locks. Older people or families without smokers might also qualify for discounts.
Third, make sure you’re not over-insured. If your insurance coverage is equal to what you paid for your house, you could be overpaying. Your purchase price includes the land value, which doesn’t need to be insured. Adjust your policy to cover the rebuilding cost of your house. You could also save by dropping coverage for items that have lost value. However, be careful not to under-insure. Construction costs are rising, so if your policy amount hasn’t kept up, you might not have enough to rebuild if disaster strikes. Talk to your agent about the right amount of coverage and think about raising the deductible to cut costs.
Lastly, be smart about choosing your new home. Coastal properties may look appealing, but they often come with higher insurance costs, especially in hurricane-prone areas. Insurance premiums are predicted to go up by 20 to 100% this year in these regions, and some insurers might not renew policies for coastal homes. This trend is creating “insurance refugees” – people who can’t afford coastal coverage and move inland, especially in Florida. So, consider the high costs that come with ocean views.