In fact, there are many home insurance facts consumers often overlook. Even small details like the kind of dog you have or things in your home may help determine the right insurance policy.
If you are in the market for a new policy, you may want to consider these facts.
1. Your Credit Score Matters
Before you begin the policy-picking process, know your credit.
An excellent credit score is the key to getting the best possible rate for your insurance.
People with median credit scores can pay around 32% more on their policies, while those with poor credit can end up paying twice as much!
If you think you are at risk for either of these scenarios, get your credit under control as soon as you can.
2. Discounts May Be Available
Although credit plays a big role, there are other ways to cut your home insurance costs. One of the least popular home insurance facts is the ability to lower your rate through discounts.
If you have made renovations to your home, you may be eligible.
Add-ons like security systems, a new roof, or some aesthetic upgrades can help your monthly payment. They show you are taking initiative to lower your potential risks and increase the value of your home.
3. Not All Damage Is Covered
No matter how much you prepare, unfortunately, disaster can still strike at any time. Always read the fine print to understand what damages are covered and under which conditions.
Damage as a result of bad maintenance, like mold in the roof or a leaky faucet, is not covered. A more surprising issue is the lack of coverage some people expect to have for natural disasters.
Many policies do not protect your home in the event of earthquakes, flooding, or hurricanes.
In these cases, severe weather protection means extra insurance or an add-on for your policy.
4. Claims Add Up
Only make a claim on your insurance when it is 100% necessary.
Insurance companies have the power to adjust your coverage, and many do so after your first claim. Some companies even raise rates depending on the history of the property’s claims, the owner’s.
This is because if you have already run into problems to make a claim, you will likely have to do so again. Raising your premium is the company’s way of protecting themselves in the future.
5. Renovations Can Cause Rates to Rise
While improvements to your home may make you eligible for discounts, long-term projects may actually cause your insurance rates to rise.
Renovations can sometimes be considered attractive nuisances, and many will have workers present in your home. Consult your agent about personal injury coverage in the event someone gets hurt.
Also, take it as an opportunity to make sure your personal belongings are covered even if you move them to a storage space during renovations.
Know Your Insurance Facts
Are you aware of all your insurance benefits and qualifications?
No matter if you are moving into a new home or have been at the same address for years, it is always important to know your insurance facts.
Contact us today to speak to a specialist about your options.