Homeowners insurance isn't a luxury, it's a necessity. Read Home and Social's top tips helps you to find the right policy and cover.

Reducing the costs of your investment property insurance

Reducing the costs of your investment property insurance

If you have a rental home, it is important to have investment property insurance. This will protect your investment in case there is damage to the property due to perils such as fire, vandalism or theft. You are also protected against liability if someone is injured in your property. However, the cost of this insurance adds to the cost of owning the home. Considering it is a rental property, the higher the profits the better. The way to achieve this is to reduce the cost of the insurance.


Below are some strategies you can use to reduce the cost of your investment property insurance.

Compare insurers

Shop around by comparing different insurer’s quotes and policies. This way you will find the most suitable coverage for you and at the best price. You should ensure that you get a few quotes and compare them. You may also talk to an insurance agent for leads. Note that some insurance companies specialize on rental properties and you should compare the rates and coverage they provide with what other insurance companies are providing.

Get a higher deductible

If the deductible is higher, your premiums will be lower. Increase the amount of deductible to reduce the amount of premiums that you pay. The word of caution is that you should choose a deductible that you will afford in case a disaster takes place.

Consider the discounts

Discounts help to reduce the amount of premiums that you pay. When looking for an insurer, enquire about discounts provided. Some of the discounts are on houses with alarm systems, detectors and deadbolt locks. Roofing that can withstand wind damage and hail can get discounts and so is having particular tenants such as elderly people and moms who stay at home. If you have insured more than one property with the insurer you may get a discount and if you have not filed claims for a while. It is always good to check with the insurer to find out the available discounts and if you qualify. This can help you to lower the cost of your investment property insurance.

Insure house’s value

Only insure the value of your house and not the value of your property. The houses value is less than the property’s value and therefore it needs lower premiums to insure. In addition, you do not need to insure the land. You can also opt not to keep any of your personal possessions in the property to avoid insuring them. Recommend the tenants to insure their possessions using renter’s insurance. This way, your premiums will be lower.

Monitor your credit score

A high credit score means that you may get lower premium rates for your insurance. Monitor the credit score and always ensure that it is good.
Assess all the ways you can reduce your premiums so that your insurance cost will be down for a larger profit.

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Tips on how to save on home insurance

Tips on how to save on home insurance

Insuring your home is another cost involved in home ownership and that is why you should know how to save on home insurance. This way, you will not end up spending a lot of money. It is important to get proper coverage and there are things you can do to ensure that you spend less and save more. Below are some tips you on how to save money on home insurance.

Shop around for insurance

If you do a bit of research on various insurance companies and the policies they provide, you may end up saving lots of money. This is because insurers differ in their policies in terms of the coverage and their rates. To get a number of quotes, you can check with comparison websites which you only need to key in the relevant information and you obtain the quotes. You can also contact insurance department in your state to get information on insurers about the rates they charge and if they have complaints. You may also go to specific insurance company’s websites, request information from insurance agents or use consumer guides to get information about the insurers and to compare their rates. Only choose an insurer with the best coverage and at a fair price.

Differentiate between the cost of the home and rebuilding cost

Insurance premiums are based on the cost of rebuilding the home and not on the value of the home. The home’s value may be much higher because the cost of land is included. In taking home insurance, you only need to insure your structures and contents. You should therefore use the rebuilding cost when deciding how much insurance to take instead of what the home had cost you. This should bring the premiums down.

Seek for discounts

Insurance companies provide various discounts to their clients such as discounts when you install a security system in your home, discounts for the elderly and discounts for using one insurer for all your insurance needs. You may also get discounts if you use group insurance from professional associations and employers. Inquire from your insurance agent about the discounts that you are qualified. You may also consider the issue of discounts when you are searching for an insurer. This way you will know how to save money on home insurance.


Review your credit limits

The limit of your policy determines how much premiums you will pay. To reduce the amount you are paying, make sure you review the limits at least every year so that you do not pay for coverage that you do not need. For instance if you had included a valuable that you no longer have, you can reduce the limit and therefore save your money.

Choose your home wisely

Some states have higher home insurance premiums than others do. Also buying a home near fire station may help to reduce premiums. A home with electrical, plumbing and heating systems that have less than ten years are cheaper than an older home. A home with wooden frame is better suited in earthquake areas. If you choose your home wisely, you can know how to save on home insurance.

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How to choose home insurance

How to choose home insurance

Every homeowner should know how to choose home insurance. This is to ensure that you get the right coverage for the right price. There are many types of insurance policies for homes such that you can get confused choosing the right one. The basic homeowner’s policy covers the rebuilding of the home in case of a peril though you can get a policy covering your contents and personal liability. Below are some tips to guide you on how to choose home insurance.

Know what the policy covers

Before signing on the dotted line, you should know what the policy covers. Statistics show that most homeowners do not know all the items covered by their policies. For instance, they do know that the policy can cover personal belongings when traveling abroad. Talk to your agent or your provider to find out what is covered. Note that policies are different.

Watch out your mortgage broker

When taking a mortgage, it is a requirement that you have a homeowner’s insurance policy to cover the building. Your broker may insist that you take the policy that is tied to the mortgage, which could be more expensive than if you searched for your own policy. Feel free to search for a suitable policy with best value.

Have correct estimates

A home insurance policy should be enough to rebuild your home and replace your contents in case a disaster strikes. To know if your coverage is enough, you need to have the accurate estimates of rebuilding costs of the home and the cost of replacing your contents. Some insurers use these costs to calculate premiums and they may help in getting you the best deal. Make sure that you do not underestimate your home contents value. You may have made purchases that are not covered in your policy, which means you are insuring them for too little. Have a current valuation of the contents. If you have valuable items, note them and discuss with your insurance provider to ensure that everything is covered. You should also keep a record of the possessions in terms of photos and their receipts. This way, you can have evidence to support claims in case there is damage or theft. Avoid keeping items of high value in other structures in the home such as the detached garage, separate building or a shed. They may not be covered under contents policy if they are not in the main house.


Look for a policy that covers all your needs

Do you want the contents of your freezer covered or you want water leaks coverage? Homeowner’s insurance policy can provide a lot of covers and all you need to do is to assess your needs and ask your insurance agent or company whether there is coverage. You can also get emergency services damage cover, in case your home gets broken into due to an emergency.

Be wary of annual increases

Most policies increase premiums due to increase in rebuilding costs. Make sure you understand these increases while keeping an eye on them. You may also request for more details if you have doubts.

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Why Property Insurance is Important for Investors

Why Property Insurance is Important for Investors

Chosen carefully, many property insurance packages can reinstate you to the condition you were in before the loss. By paying premiums to your insurer, you are buying a guarantee from your insurer that in the event of a disaster, the insurer will offer a level of cushioning. Real estate property is like a car, very useful but prone to many accidents and disasters. Smart homeowners insure their investments, especially if they are letting out their premises. Note that you have the freedom to vacate it, live there or rent it out. 

Here are more reasons why you might need to insure your property:

1. Peace of mind 

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Tips on how to buy homeowners insurance

Tips on how to buy homeowners insurance

Investing in a home is a major decision for most people and that is why you should know how to buy homeowners insurance. This will ensure that your home is protected in case of loss due to threats such as fire, theft or vandalism. How to buy home insurance is an easy step process that can mean the difference between getting your property back after damage or suffering the loss. Below are some tips you can use to secure your investment.

Steps to buying home insurance

Have basic information concerning your property, before you start the search for homeowners insurance. This way, you will be ready to provide the information because it is required in determining the amount of coverage that you need. Some of the information you should have is on the age of your home and the age of the electrical and plumbing systems, the square footage of the home and if there had been insurance claims filled in the past few years. Choose the right type of insurance for your home. If you live in your single-family dwellings with a compound, then you can get the standard homeowners policy. For a condominium, you should take insurance for your unit on what has not been insured by the association. In case your home is for rental purposes, landlords insurance is the most suitable. Once you have the information, shop around for quotes from different insurance providers. You can use online comparison websites to get quotes and compare them. This will ensure that you get the best coverage for the money.

Find out the coverage for the type of insurance that you are taking. In case you want to know how to buy homeowners insurance, you should look for coverage for dwellings and other structures on your property. Find out the coverage for personal possessions and the limit provided for valuables as well as coverage for personal liability and living expenses if the home is uninhabitable in case of an insured peril.

Determine if you need additional coverage for valuables, extended replacement costs and against perils not covered by the standard insurance such as floods and earthquakes. You may also require inflation guard.


Understand the limits of the policy. This shows how much the insurer can compensate you in case an insured peril takes place and damages your home. For instance, if the dwellings limit is $300,000, this is the amount the insurance company will compensate you in case your home is damaged. The recommended liability limit is between $300,000 and $500,000 depending on the  value of the insured property. You should ensure that the limit given is enough to rebuild your home and replace your personal possessions.To reduce the amount of premiums you should pay, you can check if you qualify for various discounts such as discounts for having security systems in the home, discount for bundling policies or for older persons.  After you have known how to buy home insurance and you have bought the policy, you should remember to evaluate it every year to see if it requires updating.

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