Top 6 Signs You’re Overpaying for Home Insurance
Home insurance can either be the biggest or second biggest insurance expense that most people pay for on their possessions. Like all insurance, it is a good idea to check your home insurance cost every year or so to see if you are still getting a good rate for adequate coverage. There are some areas to consider when doing your insurance review to make sure that you are not overpaying for it.
- If the value of your home is significantly less than the insured amount. With the decreases going on across the nation, many homes have lost as much as one half of their value. If you are living in a home that was worth $200,000 a couple of years ago, it may be only worth $150,000 or less today. If your insurance coverage is still written at the higher value, you are probably paying too much for it. It does little good to carry excessive home insurance. When it is time to pay out for a major loss, you insurance company will rarely pay you beyond what your home is actually worth. In fact, it is considered a crime in many places to deliberately over insure property to get a big payoff if it is destroyed. If there is damage to the car, Peugeot car insurance will deliver effective results. The annual worth should be excellent to get the insurance companies. The driving of the vehicle will deliver the right results without any damage and destroy to the car. The services are effective for the owner to minimize the cost.
- Poll your neighbors who live in similar houses about how much they pay for their home insurance. If you are unsure about whether you are paying the right amount for your home insurance, check with the neighbors. Most people do not mind revealing how much they are spending for home insurance. If you find that your house is costing a lot more to insure than the neighbors, it is time to shop for insurance.
- You may be paying too much for home insurance if you are carrying types of insurance that you may never use or need. This may have been added on due to a specific need at some time. You might have had a garage that has been removed and is still being insured. Your area may have been removed from the flood plain designation, and you still carry flood insurance. It is always a good plan to get an insurance review with your agent about once per year.
- You may be missing out on some discounts that are due to you. Burglar alarms, security systems, sprinkler systems, and exterior home protection such as bars on doors and windows may all carry some form of rate reduction for home insurance. You may have purchased fire extinguishers. It is even possible that your neighborhood has been rehabbed and removed from the high crime list.
- Not bundling you car insurance with your home insurance. Almost all insurance companies will give you a better rate for carrying multiple types of policies with the same insurer. Most agents will nag you about this, but some may not. You are probably due some savings if you will take the time to look into bundling your insurance.
- Look at liability coverages. If they exceed the value of your assets, you are probably paying too much. Agents like to sell high liability coverage. It is an easy way for them to boost commissions. The reality is that if you carry more liability than your worth, you are wasting your money. If you are worth $250,000, there is little need to carry a million dollar liability policy unless you run a business from your home.