To determine the cost of your homeowners policy there a few factors that need to be taken into consideration, such as:
• the type of policy
• how much insurance you’re carrying
• the size of your deductible
• construction of your home or apartment (regarding building’s fire-resistance)
• availability of fire protection in your area
• and, the location or where you live
Tips To Decrease The Cost Of Your Homeowners Insurance
There are ways where you can help minimize the cost of your insurance, granting you will still have sufficient protection for your family, property and personal possessions.
- Increasing Your Deductibles
What is a deductible? The deductible is the amount that you are responsible for in case of loss, which you have agreed. For instance, if you have agreed on a $100 deductible for your homeowners policy, you are in charge of paying the first $100 in damage. Then you would be compensated by your insurance company for the remaining balance of the loss. The maximum amount of reimbursement will be based on the limit of your policy.
So, how does your deductible affect your premiums? Well, this means that the higher your deductible is, the lower your premiums would be. You can choose to increase your deductibles up to a point where you can easily afford it, to reduce the cost of your insurance without depriving yourself of the protection you need from huge losses.
- Installing Protective Devices
If your home has protective devices installed, then you might be eligible for lower premiums. Such devices area :
~ smoke detectors
~glass and doors that are hurricane-resistant
- Multiple Policy Discounts
Depending on your insurance carrier, they could have a multi-policy discount which they may offer to you. Multi-policy means obtaining automobile and homeowners insurance together from them.
All-Risk Homeowners Policy Vs Named-Peril Homeowners Policy
Homeowner’s Responsibilities When Hiring Contractors
It is every homeowners’ legal duty to provide their guests, and in some degree, trespassers, a safe premise. As a homeowner, you are also responsible for making sure that events inside your premise would not cause any harm to your neighbors or their properties.
When you hire a contractor, you are held accountable for any bodily injury or property damages that may result from it. You are liable for both your negligence or the contingent contractor’s activities. Your homeowners policy would cover you for such events. Although, you might not want to refrain from using your policy as your primary coverage. Instead, you should ensure to verify that your contractor has general liability coverage and a workers’ compensations coverage before hiring.