Know your home and get your best homeowner’s insurance protection
For you in the military, getting complete homeowners insurance coverage and savings of hundreds of dollars in insurance premiums are both possible, by following these simple suggestions.
Know Your New Home. The age of electrical, plumbing and other systems, construction materials used to build your new home - these affect homeowners insurance premiums. Masonry homes or less flammable roofing material can provide an insurance price break, especially in dry areas of the country most susceptible to fire. But masonry homes could be much more expensive to insure against earthquake damage.
Location, Location, Location. You'll pay more for insurance in areas prone to severe weather and natural disasters such as tornadoes, hurricanes, earthquakes or wildfires. States paying the most for homeowners insurance in recent years have been Texas, Louisiana and Florida, all coastal states with above-average water and wind damage.
Is it Enough? More than 60 percent of homeowners in the United States, military included, are underinsured: they don't have "replacement value," what it would cost today to rebuild their home from the foundation up - especially if they have remodeled or renovated. Insurance coverage must updated to reflect the new replacement value of your home.
When in Doubt, Float. If you have valuables such as military heirlooms that exceed your policy limits such as engagement rings or electronics, add a "personal articles floater" to your coverage. For as little as $30 per year, a floater can insure your valuable possessions for current purchase price or recent appraised value.
Liabilities Affect Your Assets. If a visitor falls in your home and is seriously injured, their insurance company could hold you responsible for medical bills. While standard policies typically offer $100,000 in liability protection, most insurance experts recommend $300,000 of coverage or more. Increased liability coverage is especially important for homeowners with potential safety hazards, such as a swimming pool.
Deduct The Right Amount. A higher deductible, such as $1,000 instead of $500, can lower your monthly premiums significantly. Your insurance company can provide a variety of premium/deductible scenarios that will best suit your needs.
Safety Saves Money. Prevention features in your home that may also give you a discount on your insurance. Monitored security alarms, deadbolt locks, etc., are helpful. Easily accessible fire extinguishers are another good addition.
Only You Can Prevent.... Preventive maintenance on your home, as well as immediate repair of small problems, can help avert more substantial losses down the road. A number of providers offer home warranties for maintenance of appliances, plumbing, etc.
Record it All. Up-to-date records of your home's contents and structural condition can be invaluable. Have a current inventory including photos or videos of your belongings, noting how much you paid for each item and its current value. Store the records outside of your home so they won't be destroyed in a disaster.
Getting married or divorced? Are the kids moving out or back in? The amount of insurance you need -- and the items you want to cover -- change over the years. Be sure you keep your policies and inventories up to date.
