Five Possessions you must know about homeowners insurance
November 6, 2010 | Author admin
1. Faithfulness is overvalued
A lot of insurers have been raising rates to build up for losses they suffered during the financial disaster, industry experts say. At the same time, insurers are competing stiff for new customers, which means a few of them are cutting better deals for new policy holders than for existing ones, says Deeia Beck, managerial director of the Office of Public Insurance advice, a state consumer agency in Texas.
2. You may have also much exposure
It’s common for policies to include inflation-protection provisions that automatically add to your coverage amount. For now, pass on inflation fortification and adjust your coverage amount to a more reasonable figure. Lowering replacement price from, say, $300,000 to $250,000 might shear 10% off your premium.
3. An awful agent can cost you
Just as lenders verify your praise history previous to figuring out what rate to charge you, insurers tap into national databases such as the Comprehensive Loss Underwriting Exchange (CLUE) to see what claims you’ve filed in the history. Those records can be full of mistakes, warns Doug Heller, managerial director of Consumer Watchdog, an insurance support group.
Check your insurance details for mistakes at choicetrust.com; it’s free if you’ve been deprived of coverage ($19.50 otherwise).
4. Little claims can charge you,
Go with the highest deductible you can have enough money and bank the savings to cover the cost of small repairs. Filing a claim for every busted window or permeable pipe can drive up your premiums by 10% to 15%, says Don Griffin, a vice president at Property Casualty Insurers Association of America. Increasing your deductible from, say, $500 to $1,000 can lower your annual premium by as much as 25%, according to the Insurance Information Institute.
5. A home’s record matters
In the market for a new house? It may appear unfair, but claims associated with the property before you buy it can outcome in your paying more than you would otherwise. “Certain locations may be more flat to claims,” explains Kiran Rasaretnam,
To get info on past claims, ask for a copy of the seller’s CLUE disclosure report. Yes, you’re fixed with the history of the house you buy, but you can use what you find to negotiate a lower price with the seller.
via Five Possessions you must know about homeowners insurance.
Posted in Homeowners Insurance Claims
