Insurance Tips

Importance Of Having A Domestic Insurance Policy.

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Importance Of Having A Domestic Insurance Policy.

The largest single investment most consumers make is in their home. Therefore they can protect their home, possessions, and liability with a domestic insurance package.

The largest single investment most consumers make is in their home. Therefore they can protect their home, possessions, and liability with a domestic insurance package.

A domestic insurance policy is a package policy that combines more than one type of insurance coverage in a single policy.

1. Shop around

It will take some time, but could save you a good sum of money. Ask your friends or check the Yellow Pages. Inquire for information to help you choose an insurer that will be reliable including complaints.

Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But do not consider price alone.

The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. So in assessing service quality, use the complaint information cited above and talk to a number of insurers to get a feeling for the type of service they give.

 After you have narrowed the field to three insurers, get price quotes.

 2. Raise your deductible

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher the deductible, the more money you can save on your premiums.

Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.

If you live in an earthquake-prone area, your earthquake policy has a deductible.

3. Do not confuse what you paid for your house with rebuilding costs

The land under your house is not at risk from theft, windstorm, fire and the other perils covered in your domestic policy.

So do not include its value in deciding how much domestic insurance to buy. If you do, you will pay a higher premium than you should.

4. Make your home more disaster resistant

Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters.

You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials.

Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

5. Improve your home security

You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.

These systems are not cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you will save on premiums.

6. Maintain a good credit record

Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price domestic insurance policies.

In most areas, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied.

To protect your credit standing, pay your bills on time, do not obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. Stay with the same insurer

If you have kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.

But make certain to periodically compare this price with that of other policies.

8. When you are purchasing a home, consider the cost of domestic insurance

You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.

It may also be cheaper if your homes electrical, heating and plumbing systems are less than 10 years old.

If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could reduce your premiums.

If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you are shopping around for a policy.

 

 

 

posted by Xplico Insurance Company Limited XIC LTD
09 Apr 2014
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