Interviewing insurance companies
What can you afford? AND What Should you pay.
A Georgia Resident, recently received a proposal on home insurance, for a homes. When He received the quote, he noticed that it was for more than 30% of the value of the home and over 30% of what he owed on the mortgage. As long as he did not what to make money , on the home, if something happened , it’s prudent to cover the mortgage value, at least, and your mortgage company is going to require That. After negotiation with his agent, he was able to save $430.00 from the original proposal,
When you look at your Insurance proposal, you want to check your deductibles on your policy. Increasing your deductible from $500.00 to $1000.00 can save depending on the company you’re with. .Reducing your premium by allowing an increase in the deductibles is a great way to cut cost.
Next check on the deal for the week, they are always running some type of discount program, on combining Different type of policies.
Most people simply can't afford to rebuild their home and replace everything in it if there's a disaster. A home insurance policy can protect your property, some of your personal possessions and you. It’s a package policy that combines two types of coverage:
- Coverage against your property being destroyed or damaged by certain perils, such as fire, theft and windstorm
- Coverage for liability exposure – for example, someone being injured on your property
Tips : Ever couple of years its always prudent to get minimum of three proposals from other Insurance Companies , Just to keep your tennis or Golfing buddy in the running., to keep you as a client. In This Way, they will respect you in the morning.
What should you ask Insurance Companies, when it comes to your policy?
Look at the valuation clauses. Your homeowner’s will use one of two valuation clauses: Replacement cost, which is the cost to repair or replace the damaged property, or Actual cash value, which is the replacement cost less depreciation
What type of Material products used in your home save money on Insurance?
What is a class A BUILDING? Like fire rated Wood Product, Fire rated drywall, or total masonry block and brick?
If you have a steel framed building, can you save money?
Review the perils covered. An all-risk policy, which responds to loss or damage as a result of any peril as long as it is not specifically excluded in the policy, will offer more insurance protection than a named peril policy. Named peril policies will only respond to losses arising from specific perils named in the policy. Take the time to READ and include if you’re in a Natural disaster incline area.
In case you have a claim on your home, how will the home insurance policy be paid? If your lender maintains an escrow account, the insurance policy will be paid by the lender -- remember, the house is security for the lender's mortgage. If you pay for property taxes and insurance directly, you will pay the bill. You need to check with your agent, regarding escrow accounts and insurance requirements, also you may need to speak with your lender.
How your credit effect Cost
Insurance companies run credit checks on applicants because research shows that a person's credit or financial history is a good predictor of insurance claims. They have found a strong correlation between credit history and insurance claims, and they have been taking credit history into account for some time in states where it's legal.
Insurance companies check your credit scores to determine homeowner's insurance premiums. The most important thing is, insurance Companies would like to confirm that you will be paying the bills when invoiced.
Insurance rates are not only based on credit history where you live, the type of car, driving record, etc. This information is to correlate the insurance premium rate as closely as possible with the actual cost of potential claims. A clean driving record will allow you a safe driver discount or other discounts that will help absorb the higher rate that may be account of your credit rating.
Do you need life Insurance, when you own a home?
One of the main purposes, for life insurance, would be for Mortgage protection. Your wife or significant other may want you to buy life insurance as mortgage protection. If you don’t, Three months after your demise, they might have to live with your Aunt Mille or your wife’s new boyfriend.
If you’re tight on your budget, try Term life insurance. It can be used to pay off an outstanding mortgage balance. Some companies even offer decreasing term insurance, which means the death benefit decreases along with your mortgage balance. Life insurance can be used to replace the lost income ,so the survivor can maintain the same standard of living, like going to New York for a Broadway show, or Lake Tahoe for a” Get my life together séance.
Life insurance can be used to plan for these final expenses, there is always permanent life insurance if your budget allows. Check out the return on investment. Next are the Munchkins, What if? I KNOW , You don’t want to thinks about it! By the time they get to college it will be in the Millions. So maybe, you’re starting to see, if you by a home, you’d better get Life insurance. It comes with the happy harry home owner image,
Rating homeowners' Insurance policies
If you can read a financial statement that’s a good start, otherwise, it’s best to check each company’s customer service history. Checking with your state Department of Insurance along with the major insurance rating companies like “A.M. Best, Moody’s or Standard & Poor's” they have been around for a century.
Standard & Poor's insurance claims-paying ability