Insurance

A disaster has struck, a hurricane just blasted through your home and left your home uninhabitable. Now, you are forced to evacuate because living in that home could be hazardous for your health. What do you do? Having to leave your home will cost money, especially paying for somewhere to stay. Well, don’t resort to a shelter. Typically, insurance policies have what is known as additional living expenses (ALE), in the event that a policyholder must leave their homes for issues out of their control.

It is crucial to determine whether additional living expenses coverage is present during the time that a home may need to be repaired and they will incur losses and expenses as a result. This coverage is available in some homeowner’s insurance policies to pay for the living expenses that are obtained until the homes are completed and safe to move back into. Because a lot of time and money can be spent on additional living expenses, ensuring that fair compensation is provided by these insurance companies can be achieved with the assistance of a public adjuster. Repairing a home is expensive, and dealing with insurance companies is an even bigger headache.

Common Issues that May Arise with ALE claims

Homeowners who have ALE coverage on their homeowner’s insurance policies may run into some common issues that may arise when they make these types of claims. Some insurance companies use preferred contractors to inspect the homes and estimate the amount of time that it will take to repair them. These contractors have the interests of the insurance companies in mind when they complete their inspections. Since insurance companies are motivated to protect their bottom lines by paying out less in claims, the preferred contractors may try to help them to meet that goal by estimating the projects will take less time than they actually will, leaving the gap of time to be paid for by the claimant.

Based on what a preferred contractor determines, the insurance company will set out an additional living expense offer to the policyholder for any expenses they will acquire as a result. Identifying the exact time a project will take should be considered by multiple contractors in the area, a piece of advice a public adjuster will undoubtedly give. Based off of all those estimates, the public adjuster will negotiate what they seem to see as a fair settlement to provide while the home gets repaired versus what the preferred contractor is stating it should be. People should avoid accepting lump-sum offers that are based on the estimates given by preferred contractors, or they might find that they do not have sufficient additional living expense funds to pay for the costs that they incur while they are unable to use their homes.

The fact that every insurance policyholder should know is that the company just sees numbers, they do not see the loss of their customers, or the emotional strain that it may be causing them. They want to look at a profit, and having contractors work by their side is one way they will profit because they will reduce the actual time needed to repair the home. So, what happens to those additional living expenses that you must pay out of your pocket? For that reason, a wise public adjuster could be of assistance.

How Does ALE Coverage Really Work?

This coverage is quite complex because it involves many details and mathematics. Fully understanding how it really works could seem difficult for many policyholders. But, something that is understood is that this coverage will work to cover any expenses that the claimant has for an additional living cost that exceeds that of their normal costs for an insurance claim. In other words, the focus is on the additional costs. Here are a couple of examples that may clarify any confusion:

Due to a fire that consumed a home, a landlord told their tenant that they do not have to pay the monthly rent of $600 until it is fixed. That makes their normal expenses of $600 remain in their pockets. As a result, let’s say that the tenant finds a place that will temporarily house them that is near their original home and about the same quality as it until their home is fixed for $1000 because it contains furniture. In this case, their additional living expenses would be $400, not $1000 because their original rent was $600. 1000-600= 400. This means that the ALE would pay for $400, not the full $1000. The difference must be paid by the policyholder because that is what they paid before.

Similarly, instead of the $1000 rental, they find a location that has a better view for $1,500. Their insurance company can determine that they did not find a place was equivalent or similar to where they used to live and decide to only pay a rental equivalent for a $1000 one. This means that the additional cost of living would still be $400. The claimant would have to pay the difference of $1500-600=$900.

Things That May Be Covered by Additional Living Expenses Coverage

There are a numerous number of things that ALE coverage can cover; not only the rental costs are covered. These things are expenses that assist in maintaining a healthy lifestyle:

• Food or meals at a restaurant
• The difference of mileage of the original home to the new location
• The actual cost of the new location whether it is a motel, hotel, additional room in a home, apartment, or house

Storage fees for property (special circumstance)

• The rental of furniture that you typically have in your home and of importance like a bed, or refrigerator
• The fees linked with housing a pet
• The expenses for having to do laundry. The coverage will cover the costs that a tenant makes for having to do their laundry in an area outside of their homes that is char
• ging them money for the service; and
• Displacement and or moving costs

An evaluation will take place with regards to the way of living prior to and after of the claimant despite all the expenses that they acquire during the additional living expense phase.  For example, if you are claiming Mcdonald meals, yet you ate Mcdonalds every day, those costs will not be recovered because it is something you previously did regardless of having to relocate or not. In other words, compared to your normal lifestyle’s costs.

 Are There Any Limitations on ALE Coverage?

To anything in life, there are always limitations, and this includes ALE coverage.  There are limits to a few things depending on which type and form of policy the holder has. Usually, these are the limits that will be seen on ALE:

• The dwelling limit on common homeowner policies is about 30%
• The limit for insured items or personal property for a holder who has a condo policy is 50%
• The limit for insured items or personal property for those who have a standard policy is 30%

These are only a few of the many policies in place for ALE limits. For this reason, it is crucial that each policyholder knows what which type and form of coverage they have. In each policy, the DEC page will have this information. If a policy has higher limits, the limits to the ALE may be increased as well. It is always better to be safe than sorry which is why knowing whether the additional living expense policy would suffice is essential for the carrier to determine.

Ensuring that You Obtain Maximum Benefits: Four Things Must Be Done

Everyone wants to be compensated fairly, right? Obviously. But if the correct steps are not taken, many things could be missed, and fair compensation would not occur. These are four things that each homeowner should do in order to maximize the number of benefits they are paid for an ALE claim:

1. All receipts for expenses that have been made should be kept, including gas, meals, storage fees, furniture, and more
2. Differentiate how the normal costs that you do are less than the current expenses you are having to do
3. Have supporting documentation of the normal expenses that are made by you in order to clarify any questions that the insurance company may have
4. To avoid problems in the future with specific expenses like special expenditure for storage, obtaining a written authorization from the company prior to doing so is a key asset.
5. Not only does

a public adjuster want their client to make the best out of the worst possible situation they are having, but they also want them to be knowledgeable about what they can expect to see come from an ALE claim.  It is wise to comprehend what will be covered and why when it comes to additional living expenses, that way, there are no surprises and everyone is a happy camper.

How ALE Coverage Settlements Should be Handled

Insurance companies should help homeowners to find similar homes to their own in nearby neighborhoods and to negotiate leases for them for the duration of time that they will need to stay in the rental properties. In order to make sure that the owner is being provided with sufficient amount of additional living funds during the time that the repairs are being done, the ALE policies should state open until repairs have been made. These are all instances that a public adjuster will make sure that it occurs. While “should” is the common word mentioned above, in most cases, it is “don’t.”   Sadly, money has become the number one “important” thing for most companies; it is not about customer service or compassion anymore.

Have an ALE Claim you Need to File? Get a Public Adjuster Today!

Public adjusters work on behalf of the homeowners to protect their interests and ensure that all of their concerns, confusion, questions, and other issues are met throughout the claims process. They take care of all of the negotiations to ensure that the homeowners receive enough money to pay for the repair costs to their homes and for any additional living expenses that they must incur. If a factor outside of the homeowners’ control was the culprit for them having to leave their homes, the insurance companies should be in charge of paying for that. If the homeowners have additional living expense coverage, the public adjusters around you will work to ensure that the homeowners are housed in homes of a similar quality as their own until all of the necessary repair work is completed on their homes.

A public adjuster does not want the insurance companies to get the upper-hand, because that is what they will try to do. The maximum possible benefit amount is what they strive for. Public adjusters understand that these moments should not be made more stressful. In fact, it should be a moment where a policyholder has a peach of mind knowing that they will be well-taken care of.

References:

• https://www.thebalance.com/claiming-additional-living-expenses-ale-coverage-4154070
• https://www.publicadjuster.com/resources/blog/post/4337/policyholder-question-additional-living-expense-ale-conflicts-and-cash-out-offers

If you happen to be in the unfortunate position where you must file for a claim on your homeowner’s policy and then discover that the claim has been denied, it is imperative that you know what to do next. Instinctively, you might want to lash out at your agent, the adjuster, or everyone involved in the process. However, it is essential that you calm your emotions and remain cool and collected so that you can review the whole situation logically. This guide will help you understand what could have led to your claim being denied and what you can do to dispute the claim successfully.

Why would your home insurer deny your claim?

You have first to understand that insurance couriers regularly deny policy claims; this means that it is not personal. Sometimes there’s reasonable cause to why the claim was denied, and at times it is a just human error.

As such, they may have made a filing mistake, misread the terms of your policy, or someone inexperienced or new in the insurance office handled your claim yet they did not fully comprehend your claim.

Therefore, it is essential that you keep detailed and accurate records of all forms of communication that you might have had with anyone in the company concerning your policy and loss. This includes the insurance firm, witnesses to the loss, and any other expert whose guidance you have sought. Therefore, document every phone call, face-to-face meeting, and email that you send or receive during the period of making your claim.

Nevertheless, here are the most common reasons to why your insurer denied your homeowner’s insurance claim.

The state of your deductible

Your home insurance policy features a deductible. A deductible is what you agree to pay a claim. As such, if the amount equivalent to your damage or loss is less than the deductible, then your insurance policy lacks enough coverage for that claim. Typically, most homeowners have a deductible of $1000.

Additionally, the deductible for hail or wind claims is usually different from other kinds of deductibles and is likely to be higher. You, therefore, need to carefully go through your policy to understand the nature of both your Wind-Hail deductible as well as that of your all Perils deductible.

Also investigate how much it would cost you to have a $1,000 deductible.

Covered Perils

One of the most prevalent misconceptions is that insurers will cover all types of damage to your house. This is not the case. You need to know that your policy is only meant to cover a sudden loss that has an immediate source of damage. Thus, in your policy, the sudden loss is referred to as an occurrence, while the immediate damage source is known as a peril.

Perils are the cause of the loss or damage that just occurred. This implies that wind, lightning, theft, and fire are all considered to be perils. Accordingly, different perils are covered by separate policies. For instance, the three types of policies include:

• Basic (DP1 or HO1) – this policy can cover 11 categories of dangerous situations that might occur or 11 named perils.
• Broad (DP2 or HO2) – this policy covers 11 kinds of bad situations that happen or 16 Named Perils.
• Special (DP3 or HO3) – this policy covers all types of perils unless they are added as exclusions.

Therefore, for your claim to be covered, the insurance firm’s adjuster must come and ascertain that there was indeed a sudden loss (occurrence) that was caused by a peril which is included in your policy.

As such, unless your policy type is an HO3 that covers everything, chances are there are perils not covered by your policy.

Exclusions

Some things could be excluded from your home insurance policy or are just limited. The more common exclusions include earthquakes, floods, and sump overflow or water backup.

In coastal states, hail, hurricane, or wind are commonly excluded. Likewise, in places where wildfires are prevalent, this peril is excluded. Nevertheless, these exclusions can be covered separately for an additional cost.

As such, if either of these perils hit you, your claim might not go through because they might be excluded from your policy.

Your liability coverage

Liability coverage is a cover you take to protect yourself when bad things occur to other individuals happen because of you or your actions.

This commonly occurs when you hire people to do some work on your property.

For instance, home cleaners, tree trimmers, or landscapers are examples of individuals that could come to your property and cause damage to it.

When this happens, the liability is on them. This means that it is their policy that should pay for the damage because yours might not accept responsibility. Therefore, it is crucial only to hire people with liability insurance.

Occurrence vs. Maintenance

A homeowner’s policy will typically not cover necessary maintenance around your home. For instance, if your roof is old and leaking, you will have to replace that yourself and not the company.

This is because insurers cover, i.e., adverse events (perils) that might cause damage to your home. As such, home maintenance will not be taken care of by your home insurance policy.

Nevertheless, you might have done all that needs to be done but still get your claim denied. If you feel you are getting a raw deal, do not take it. Many people feel powerless and grudgingly move on. The truth is that there are straightforward things you can do to get fair compensation.

Claim disputes can prove to be too complicated for the average person to handle without public adjusters. Therefore, try this do-it-yourself guide before resorting to contracting an adjuster.

Be fully aware of the coverage you purchased

For the most part, claim disputes result from confusion about what your homeowner’s policy covers. Therefore, before you go throwing a fit because of the claim denial, systematically go through your homeowner’s policy to ascertain that you are indeed covered for the damage in dispute in addition to seeing what your coverage’s dollar limit is.

When you are aware of what you are entitled to under your homeowner’s insurance policy, you will be able to tell whether you are covered for that damage or not. This will also save you legal fees in case you decided to pursue legal action before checking your policy.

Review your claim

If you are still not sure why the claim was denied, or the settlement made was lower than expected, talk to your insurance agent to get further insight and clarification. If they begin citing terms such as ‘exclusion’ and another insurance-specific language, ask to be shown the section where that has been indicated in the policy.

Ensure that you are documenting everything that your claims adjuster or insurer are telling you. Keep a record of all the people you speak to, what was said, and the dates. If you get the information in person or by phone, make sure you send a follow-up e-mail confirming what you communicated.

Once you are sure of where your insurer stands, prepare all the documents that might help your case. For instance, if your insurance courier estimates that it will cost a specific sum of money to repair your home, but you think that it will require a lot more, have an independent contractor write for you an estimate to provide as proof.

Consider getting an independent appraisal

If you are positive that your carrier is shortchanging you, you could consider getting your home insurance adjuster or appraiser to give you an independent estimate.

However, these individuals may cost anywhere between $200 and $500 depending on how far they have to travel to get to your home. This means that if the cost of hiring one of these experts is roughly equal to the discrepancy in your claim settlement, you are better off saving your time and effort and just accepting the proposed settlement.

Also, note that the second professional opinion could do either of the following things: they could affirm that your carrier’s proposed settlement is indeed correct, or they could assist you in finding some loopholes that you could use to get a better settlement.

If you are fortunate enough to fall in the latter category, you can use the findings of the independent adjuster to argue the case to your favor. Now contact the claims department again and notify them about the independent estimate. You could also ask to communicate with the claims manager and have them re-evaluate your case.

Politely appeal your denial

• If the insurer is not budging, appeal to them. Now that you have all your documents ready prepare a letter to your adjuster. In the letter, briefly explain how you are perceiving everything in addition to attaching all the evidence that supports your point of view. Ask that they review the claim once more.
• Ask that they kindly reply to you within a specified period, for instance, ten days. So that you can have an accurate record of the exact days that your letter was sent and received, utilize the certified-mail option at the post office. Additionally, send a copy of this letter plus the other documents that are in support of your case to your adjuster’s supervisor.

One thing to remember, however, is to stay calm, collected, and polite even if you are seething inside. Do not be adversarial and threaten to hire a public adjuster as your carrier might decide to lawyer-up.

File a complaint and hire a Public Adjuster

If all else fails and you still feel that you are on the right, this is the option to take. However, note that most claim disputes do not make it to this point.

Nevertheless, homeowner’s insurance policyholders do have the right to report what they believe to be mistreatment or other unethical practices to the state insurance department. The department should then look into the claim and offer you advice on what steps to follow next.

• The state department of insurance usually evaluates whether your claim is indeed justified. Upon affirming that, they will then use their channel to communicate with your insurance provider and ask them to give you a better settlement.
• The state department of insurance may also suggest that you hire an public adjuster. However, they will not help take care of these expenses. You will have to bear these costs, and therefore you must weigh these costs before choosing to make the case to court.
• Suing your home insurance company will prove to be a lengthy and expensive endeavor. If you must do it, make sure the headaches, delays, and financial dents you are about to endure are worth it. This is only necessary if disputed settlement or claim is off by over $1,000.

As such, before you proceed with this step, ensure that you have exhausted all the measures provided above. Additionally, you could consider bringing in a public claims adjuster. They will assist you in navigating the process from the beginning especially if it is a substantial claim that could pay off in the end.

Claim denials and disputes are a common phenomenon in the entire insurance industry. As earlier mentioned, most of them arise due to confusion about what the policy covers. As a homeowner, you need to go through the policy before you purchase it thoroughly. This will allow you to know what you are getting yourself into. Additionally, be familiar with all the terms used in the policy agreement as these are the same phrases that will be used against you in case you are not happy with your settlement, or your claim gets denied. However, if you have done everything by the book and are feeling shortchanged, systematically follow the steps above and you will hopefully find a fairer resolution.

Home security doesn’t just consist of a security alarm system, or your loyal animal companion to alert you. Home insurance also includes protecting your residence with homeowner’s insurance as well. Insurance coverage is essential for your biggest asset’s overall protection. Homeowner’s coverage is a form of property coverage that covers losses and damages to an individual’s house and assets in the property. In the event of a disaster, thefts or accidents involving your home, homeowner’s coverage provides you with the financial protection needed during these tough times. Most standard policies include five essential types of coverage:

• Interior Damage
• Exterior Damage
• Loss or Damage of Personal Assets/Belongings
• Injury (while on property)
• Coverage for additional living expenses

When a claim is made regarding any of these incidents, the homeowner will be required to pay a deductible, which in effect, is the out-of-pocket costs for the insured. It is very similar to auto coverage regarding protection. For example, your basement becomes flooded from a terrible storm, like the one that currently occurred on the east coast. You contact who you have a policy with to make a claim regarding your property. This would be considered interior damage as one of the particular coverage’s stated earlier. A claims adjuster has estimated that it will cost roughly $12,500 to repair the damages. When the claim is approved, the policyholder first has to pay the deductible (as stated in the policy agreement when they signed up), before the work is scheduled to begin.

Rental coverage is very similar insurance coverage, being that it provides protection against the most types of problems that a homeowner may occur. This coverage is for individuals who don’t own their residence and are renting their property.

Detached structures like garages, tool sheds and gazebos are also covered with coverage. The landscape surrounding your property is also covered as well. Items such as trees, plants, shrubs, and flowers are generally covered for around $300-$500 per item.

Personal belongings like clothes, jewelry, collectibles, furniture, kitchen and bathroom items and other personal items are also covered as well. There are limits regarding these personal items though. When signing up for coverage, you usually get to pick the amount of coverage you prefer. It would be a good idea to get your valuable items appraised annually just for protection in case you have to make a claim. Some companies even offer up to $500 of coverage liability on unauthorized use of your credit cards. I know right, I couldn’t even believe that one. The best way to determine if you have enough coverage would be to do an annual inventory of your residence to determine if your coverage is enough.

Natural disasters such as earthquakes, landslides or floods are typically excluded from most policies. For the people who live in areas prone to natural disasters, they’re policies that are explicitly designed for those individuals. All forms of coverage’s also provide additional living expenses, called “ALE,” which is coverage for the extra costs of living away from your residence if it is uninhabitable due to damage from an insured disaster.

Additional Living Expenses (ALE)

Type of coverage that’s included in your homeowner policy. Additional living expenses coverage covers you if your residence is inhabitable. ALE pays for the difference between pre-and-post housing and food costs. It covers hotel expenses, food(such as grocery, restaurant meals, etc..) and other similar expenses. ALE coverage reimburses the insured for the costs of maintaining a comparable standard of living following a covered loss. Meaning any expense that exceeds what you would usually spend. In layman’s terms, ALE covers you for the additional costs that you’ll occur during your displacement. The amount of coverage for additional living expenses varies from one company to another 10%-30% in most places. ALE’s coverage is 50 percent of your personal property limits. I strongly advise policyholders to keep all receipts for lodging, meals and other essentials to make a claim easier. Depending on the insurance carrier, funds are available immediately upon loss notification. Other carriers will reimburse policyholders at a later date. Overall, ALE coverage is designed to help families obtain better housing options, providing the opportunity to improve an already challenging situation.

Liability Coverage

You can protect your assets against claims and lawsuits with liability coverage which is available on your homeowner’s policy. Liability covers you against lawsuits for issues regarding your property, such as bodily injury or property damage that you or family members may cause to other people. It also can pay for damage caused by your pets. Depending on the limits you’ve agreed to when you obtained a policy. You can also be covered for the costs of defending you if you’re ever required to attend court. Liability limits usually begin with $100,000, but it’s wise to consult a Miami, FL public adjuster to determine if that will be enough coverage for your property. If you decided to obtain more coverage than the norm, I’d suggest getting an excess liability policy which provides a broader coverage with higher liability limits. Another perk of the liability portion of your homeowner’s coverage is called “no-fault coverage,” this is when an individual, whether a neighbor, friend or stranger gets hurt on your property. If a costly injury occurs, they can submit their medical bills to the company for financial remedy. This does not, however, pay the medical bills for your immediate family or pets.

Premium Insurance Factors

Different factors determine your coverage premium. Below I’ll list some of them for you to consider when obtaining coverage.

• The location plays an important role determining your premium.
• The condition, age, and construction also play a significant part as well.
• Marital Status also is a factor.
• If you have a swimming pool is also a factor.
• Your deductible influences your monthly premium.
• Remodeling

To get the most effective coverage, I would suggest getting a professional appraiser. Some insurers send their appraisers to appraise the property as part of the approval process. If your home is damaged or destroyed, this can be advantageous during the settlement process.

Policy Deductible
The amount you have to pay toward a loss before the company pays a claim is called the deductible. As with most policies, the higher the deductible, the less your monthly premium will be. This makes choosing the right amount of coverage a significant decision. The consensus among most insurers is to recommend a deductible of at least $500. As stated earlier though, your deductible will be lowered if you decide to choose a higher deductible. This can add up to a savings of up to 30% on your coverage.

Believe it or not, your credit score can affect your premium significantly, even with some companies, the ability to obtain coverage. In the industry, you have whats called an insurance score. People with low credit scores can be considered as a financial risk for some companies. If you are granted a policy, be aware that your premium might be higher than the norm. But as with everything, with effort, you can improve your credit score and then obtain another policy reflecting the change.

Companies use multiple factors when determining your rates. These factors point to the importance of shopping for coverage. You may be paying too much for coverage if you’re not buying around.

References

• Home Owners Insurance
• Additional Living Expenses
• Insurance Journal
• Concrete Network

In a day and age where the price for everything is increasing, searching for savings is essential. One monthly bill that many people do not think to look for saving money is home insurance. Depending on what the deductible of the policy is, how safe the insured home is, its location, and many other factors, the premium, or what the policy costs, can vary greatly. Many of these factors are within the insured’s control, so lowering the cost is not as difficult as it may sound. Here are some tips to lower monthly insurance premiums.

Shop Around for Prices

With all of the insurance companies on television advertising for home insurance, it is no secret that there are a lot of options to choose from when picking a home insurance company. Many companies provide quotes online and have representatives that will generate a quote on the spot. Keeping a list of every quote is helpful when trying to make a decision. However, when shopping for insurance, it is essential that quotes for the same type of policy are compared. The premiums, the monthly or annual cost, along with the deductible, what has to be paid in the case of an event like a fire, windstorm, etc., and the benefits, what is paid out from the policy, all have to mirror each other.

Know the Lingo

A great tip for saving money on anything, but especially insurance, is knowing the jargon that is used in the insurance industry. Research what premiums, deductibles, and policy limits are. That way, when speaking to a private insurance agent, telephone representative, or generating a quote to buy online, there are no surprises. The buyer will know exactly what they do and do not need, and not overpaying for unnecessary coverage.

Know the Home’s Worth

To be prepared with knowledge is the easiest way to get the best price. Along with industry jargon, knowing and understanding the property’s value is crucial to only pay for what is necessary when seeking a new insurance policy. Remember, the land underneath the home is not what would have to be rebuilt in the case of an event. It is the home itself. Do not include the entire property’s value when estimating the value of the home, because the premium will be so much incredibly higher. Understand the difference between entire property value and rebuilding value.

Try to Bundle

Most insurance companies offer multiple different products. These can include policies for homes, cars, motorcycles, boats, and apartment renters. When searching for a new home policy, or savings on a current one, a wise move is for the seeker to check with their current company. A discount may be offered when “bundling” policies, or paying one payment for multiple products through the same company.

Stick Around

If possible, remain a loyal customer to the same insurer. Sticking around has its benefits, as many companies offer a loyalty discount in the form of tiers that only increases with time. For example, a small discount may be applied automatically for being a good customer for an entire year. However, after three or five years, more substantial discounts may become available for remaining with the company for an extended period. Ask the company’s representative if they participate in such a program.

Review, Review, Review

Once a year, belongings need to be reviewed for their updated value. Ensure that what is being insured is still in the home and that those items have kept their value from last year. An example would be if a $5,000 home theater system was purchased a year ago and it is now only worth $3,000, and the policy would need to be updated to reflect that so unnecessary coverage is not paid for.

Safer Homes Can Mean Smaller Premiums

Making sure that the home has updated security features like windows and home alarms could save money on the monthly premium. Some companies provide discounts for such features, knowing that it is more difficult to damage the property and they are less likely to have to pay out on a claim. Whenever the insured is requesting quotes, they should ask what discount programs, if any, the company participates in. This is especially true before installing alarm systems, replacing windows, or completing any other renovation as these can be costly upfront, despite it being worth it in the long run.

Check with an Agent

While it may be easier and more convenient to obtain a quote from an insurance company online, specific agent-only discounts may be available. Word of mouth is a great way to find a reputable insurance agent who can assist in all sorts of insurance needs. Agents are also great resources when considering to bundle policies, learn about insurance, or when a claim needs to be filed.

Consider the Cost of Insurance When Buying a Home

When most people purchase their new home, especially a first home, they do not remember to include the cost of the insurance with the cost of their home. They take their approved amount and find a house for that cost, not thinking of the additional payment of insurance that will cost each month. When the celebrating of new home-ownership is over, and the bills start to come, they realize they are stretched a little thin financially. When purchasing a home, it is crucial to include the cost of the insurance into the monthly budget, along with the proposed mortgage payment. This way a healthy budget is created and the new homeowners are not stressed in a few months.

Maintain a Good Credit Report

Even after the home buying process is complete, it is essential to maintain a good credit record. This means paying bills on time, communicating with lenders, not overspending, and making sufficient payments each month. Insurance companies do pull a credit report to see if the applicant has a good payment history, and can base premiums slightly off of that. The better the credit, the more likely of a lower premium.

Review the Necessary Deductible

If the homeowner can afford a higher deductible in the case of an event, increasing it can decrease premiums. This is because, in the event of needing access to the policy, the less the company has to pay out, the less the policy is going to cost. This is an excellent place to start, especially if there is already existing policy, as it could make it possible for the insured to stay with the same company longer and grab more savings down the road.

Whether this is a first home or a fifth, these tips can help a homeowner put some money back in their pocket. Buying a home is what most people would consider the most significant purchase of their lives, but having it insured does not have to be.