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In all cases, mortgage lenders will require a buyer to acquire
homeowners insurance within 24 hours of closing -and in some
cases require proof of homeowners insurance quotes even before
closing. Even if it wasn't required, this particular type
of insurance is a highly recommended necessity anyway.
Fortunately, homeowners insurance typically won't drain your
wallet; but it's still best to shop around for the best quote
...or better yet, let someone else (like NetQuote)
shop around for you for the top quotes.
There are a few things you should know in order to easily
lower your policy premium and avoid costly, unnecessary mistakes
by getting insurance you do not need or worse in not getting
insurance you do need.
Your first major decision is to decide what type of coverage
you want:
Replacement Cost Insurance
A Replacement Cost Insurance policy pays the amount it costs
to replace the house. This policy does not deduct any funds
for depreciation, but it has a maximum dollar amount. So you
should pay close attention to the cost of rebuilding your
home, to make sure it does not exceed the maximum payout.
Guaranteed Replacement Cost Insurance
A Guaranteed Replacement Cost Insurance policy also pays the
amount it costs to replace the house. This policy does not
deduct any funds for depreciation, and has no maximum dollar
amount. Keep in mind that this policy is sometimes limited
to 120% of the cost of rebuilding the house.
With this policy, you have the piece of mind of knowing
that you can have your house rebuilt, no matter the cost.
Check to see if this coverage is available in your state.
Actual Cash Value Insurance
Actual Cash Value Insurance does not guarantee full payment
of the cost to rebuild your home. Instead the insured receives
what the insurance company determines as the worth of the
property including subtractions for depreciation. Unless a
homeowners insurance policy says it covers the replacement
value of the property, it covers the actual cash value.
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FREE Insurance Quotes from NetQuote
Here are a few ways to cut your homeowners insurance premiums:
Competitive Quotes
Competition breeds the best prices, so it is best to let the
insurance companies know that they are competing for your
business. A good way to get quotes is to use a free online
quote shop. These programs submit your information to many
different insurance companies which in turn compete for your
business.
These online programs are generally free and require no
commitment. There is almost a guaranteed chance you will save
money this way. We highly recommend NetQuote
for excellent service and quality rates.
Higher Deductibles
If you can afford higher deductibles, then you can lower your
premium (sometimes significantly) by having a slightly higher
up-front cost in the event something goes wrong and you need
to make a claim.
Combine Insurance Policies
Sometimes it can make sense to look at consolidating your
various types of insurance such as auto, health, homeowners,
etc with a single insurer. In many cases, the rates for the
consolidated package will be less than keeping each policy
with different insurers because they may offer discounts for
the extra business.
Land Coverage not Needed
Usually the insurance agent will consult with you, but occasionally
some people make the mistake of including the cost of their
land into their insurance coverage. In most cases, all that
is required for a good policy is to make sure the house can
be rebuilt and any valuable property (jewelry, collectibles,
etc) can be replaced.
In-house Safety Devices
Equipping your home with smoke detectors, intruder alarm,
fire extinguishers and other safety equipment can be justification
for negotiating lower rates. You should ask your insurance
company what you can do to make your home qualify for these
discounts and/or specify these devices on quote applications.
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FREE Insurance Quotes from NetQuote
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