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.

What insurance is all about

What insurance is all about

Many unfortunate events take place and this is where insurance comes in to reduce the burden. Some of the events include dying of a loved one who is the breadwinner, burning of a house or items being stolen or a car getting into an accident and being damaged or injuring people. All these involve loss of something.

What is insurance

To reduce the impact of the loss, insurance companies compensate the organization or person, the loss they have suffered. Unfortunately, events such as the loss of a loved one has no equivalent value, though the family left behind is given some money to push through. The level of compensation depends on the agreement between the insurance companys and the individual or organization that has been insured, in a document called ‘policy’. The policyholder is required to pay a premium every year to qualify for the compensation. The policy is also deemed as a contract between the insurer and the client. The company agrees to pay a particular amount of money or to settle the costs to the client if a particular event takes place. For instance, if the contract is on insuring the car, the company can agree that it will pay for car repairs if the car is damaged and can replace it if it is stolen. On the other hand, the client should pay premiums for the policy while also taking care of the car.The insurance policy or contract is based on disclosure and not making false statements on the side of the client, and good faith on the side of the insurer. The insurer gets into the contract on the believe that the client has given all the required information and that it is true, while the client believes that the company will act in good faith while honoring the contract.

What can be insured

Insurance can be taken on a number of events such as against ones death, against damage or loss of valuables, against health and against a home, among others. The field of home ownership has not been left behind in insuring. Many things can happen to a home such as fire and theft and can leave the owner devastated. However, with homeowners insurance, all the owner of a home is required to do is to get into a contract with the company and then pay the premiums to the insurance companys and the home is said to be insured. The insurer and the homeowner have an agreement that in case any of the losses insured take place in the home, the homeowner will be compensated. It is not a legal requirement that homeowners should have the insurance, but it saves a lot of headache if the home is damaged or items are stolen. You can also benefit if someone is injured in your home or your pet injures someone and you are the one liable. You will also find that   some mortgage companies require one to have it in order to be lent money.

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Benefits of online comparison in getting home and auto insurance quotes

Benefits of online comparison in getting home and auto insurance quotes

With the presence of insurance companies and comparison websites online, it is now easy to compare home and auto insurance quotes. This comparison has a number of benefits and some of them include:

Saving money

One of the main purposes of comparing quotes of different home and auto insurance companies is to save money. By shopping around and comparing various quotes online, you can get an insurer with cheaper rates because you will be comparing rates from different insurers. Various factors affect the insurance rates on cars and homes. In the case of cars, the car model, driving record, your age and where you live are some of the factors that affect the rates. For homes, where the home is located, the crime rate of the area and the perils that are common in the area affect the insurance rates. Different insurers have their own ways of using these factors to set the rates and that is why you may find that some are charging lower rates than others are. You can only find those with lower rates by comparing quotes from different insurers.

The search is simplified

If there were no online comparison, one would have to go or call each insurer to obtain quotes. The other option would be to fill online forms on every insurer’s website so that you can later compare them. The online tools have simplified this process with their convenience and speed. All you need to do is to go to a home and auto insurance quotes comparison website, complete one form and you will receive quotes from different insurance companies. You may then compare the quotes and choose the companies you would like to research further and insure your home and car with them.

Shopping at your convenience

If you were to call insurance agents or home and auto insurance companies , you may have to do it at a particular time and it can take a lot of your time. While using online comparison sites, you can do it at any time and you will find that most insurance comparison websites have agents that can be accessed on extended hours to assist you with the search. You are able to shop for quotes at any time and at your own comfort.

Easy to find the right policy for your needs

People have different insurance needs. For instance, in the case of your car, you may want only the minimum coverage for your car or you would like your policy to cover even the rental car coverage. For the house, you may want to cover the dwellings and the other structures and include a cover on flood. Online searches allows for customization such that you can find the kind of policy that you need. By comparing quotes from different home and auto insurance companies, you may also find additional coverage for the same budget. You may also be insured instantly by purchasing your preferred policy online.

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How to get cheap homeowners insurance

How to get cheap homeowners insurance

Insuring your home against perils does not have to be expensive because there are ways you can get cheap homeowners insurance. Just by being a loyal customer or by maintaining good credit can translate into lower premiums. Below are some of the ways you can use to ensure you pay cheap home insurance rates.

Use insurance bundling

This means having many policies with one insurer. If your auto and home insurance are with one insurer, you can save as much as 30 percent in premiums. If you also include life insurance, the savings will be more. An additional benefit is the ease of payment because you will be writing one check.

Increase the deductible

The higher the deductible, the lower the premiums you should pay. The deductible is out of the pocket amount that you pay before the insurance comes in. You can have your premiums reduced on the condition that you will pay a higher deductible to help you achieve your goal of cheap home insurance rates. The only catch is that you should have enough money for the deductible at all times in case there is a peril.

Install a home alarm system

An alarm system improves the security of the home. In case you have a fire alarm, carbon monoxide and motion sensors, you are likely to reduce the insurance premiums. If you have an advanced security system that has monitoring, the insurance premiums discounts are higher. Having an alarm system and monitoring reduces risks such as that of fire and theft, resulting to low premiums. Just make sure that you have an idea of what you will save if you install a security system by checking with the insuring company or an agent.

Maintain loyalty with the insurance company

Using the services of one insurance company for duration of about three to five years can result to cheap home insurance rates. This is because of the discounts provided by insurance companies to its loyal customers that can range from five to ten percent. However, some insurers may require you to stay claims free or to have multiple policies before getting the benefit of loyalty discount.

Have a good credit rating

If your credit score is high, you can get lower premiums on your home insurance and therefore, pay cheap homeowners insurance. Insurers use credit reports to gauge how risky a customer is. According to statistics, someone with a good credit score is likely to have fewer claims. Insurers use different ways of calculating the impact of credit scores on the premiums. You may find that with the same score, the premiums are lower for one insurer and higher on the other. You should therefore shop around and inquire before settling with one insurance provider.

Prepare your house for disaster

Having your home fortified can result to discounts on your premiums and therefore, reducing the amount of insurance that you pay. You can do this by making your home storm ready through proper roofing.

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How to ensure that you pay cheap auto and home insurance

How to ensure that you pay cheap auto and home insurance

By doing enough shopping around, you can end up getting cheap auto and home insurance. This does not mean that your policy is inferior because shopping around enables you to find the best policy that is affordable. It means that you are able to find the best insurance coverage for your car and home at a lower premium. The question is how do you do that?

Use the Internet and the services of an insurance agent

There is no better place to start your search when you are looking for the cheap auto and home insurance than the Internet. There are websites that are dedicated to providing insurance quotes and you can use them to find the cheap home and auto insurance with the coverage that you desire. You can also go to specific company’s website and obtain their quotes. Compare different quotes and choose the ones that please you. Insurance agents are experts in the field and they know the companies that provide the best rates and with a good coverage. Let the agent know that you would like to have a combined cheap auto and home insurance. This way, it will be easy to narrow down to few providers. Note that what is on the quotes may not be the exact amount that you will pay. Other factors can affect the amount and you should therefore contact the company to get the final quote.

Consider factors that would reduce the premiums

There are things that can help you to save on your cheap home and auto insurance while still getting the best cover. The first one is to make sure that you get a combined insurance so that you can take advantage of bundling discount. This may reduce the amount of premiums paid in comparison with what you would pay if you were paying for the auto and home insurance separately.

In addition, other discounts are provided which you can take advantage of such as student’s discounts, membership in a professional organization discount, union member discount or even having graduated from a particular university can guarantee you an insurance discount. Staying longer with a single insurer can also result to a discount. You may also find that if you deal with the insuring company directly you may end up paying less for the policy unlike if you were using an agent. This is because agents charge commissions, a cost that may be included in your premiums.

Another way you can ensure that you pay cheap home and auto insurance is to make annual payments instead of monthly payments. With annual payments, the insurer does not spend a lot in administrative costs, which translates to lower premiums for you. Wanting to pay lower premiums does not mean that you are foregoing good insurance coverage for your car and home. It means that you want to pay the cheapest while getting the best. With a bit of research time and taking advantage of discounts, you can make that possible.

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Steps you need to take to buy homeowners insurance online

Steps you need to take to buy homeowners insurance online

Internet came to simplify things because you can also buy homeowners insurance online. There is no longer the need to move from one insurance company or agent’s office to another trying to compare the policies. With a few clicks, you can manage to compare various insurance policies and to make purchase of the same at your convenience. The Internet provides more insurers to choose from and easy ways of doing comparisons such as quote generation. The steps you can take when buying home insurance are:

Get insurance quotes

The first step you should take if you want to buy homeowners insurance online is to go to comparison websites, insurance companies or agents’ sites to get online quotes. You will be required to answer a few questions to get the quotes. In the case of comparison websites, they forward the information you give to them to insurers and then they provide the quotes. Review the quotes you receive carefully. You should not just look at the monthly premiums but also the coverage amount you will receive. Check if there are special options or limitations on coverage. Note that the cheapest policy may not be the best. Select a few reputable companies from the list based on the quotes that you prefer, which are the best. Now that you are left with a few insurance companies to deal with, do more research on them. Search their ratings and customer reviews on the Internet. You can use rating websites to see what other customers have experienced. Go to each company’s website and find out more about their services and history. This should leave you with at least two companies from which you would like to buy home insurance. Visit each company’s website to check their level of customer support. The website should be secure and privacy policies published. It should have the capabilities of encrypting sensitive information. Check if there is a checklist offered to buyers by your preferred insurer. This would help you in determining the kind of coverage and the amount you should be insured.

Apply for the insurance

When buying home insurance, you should have all the insurance application information required to make the application. This should include the cost of home rebuilding and for replacing belongings. Knowing the value of your home or cost of rebuilding is helpful in determining the amount of coverage you need that is enough to pay for losses in case the insured event takes place. Request the company you have chosen to provide you with a final quote. You can print it to enable you go through the details. The quote should closely match to the initial one. Analyses it carefully to ensure that it meets your needs. Call or email your chosen insurance provider to make inquiries on areas that are not clear before you submit the final application. Find out if you will pay the entire premium upfront or just part of it. To avoid making errors, take time before submitting the application and the payments.

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