Money Girl tells you how to get the best rate on home insurance and 5 tips to save money.
Getting a home mortgage means you’re responsible for repaying a big debt on time. But there’s another expense that you can’t forget about: home insurance.
Most lenders will require you to have a homeowner’s policy. However, just because you have to buy one doesn’t mean you should overpay for it.
In this episode I’ll give you 5 easy ways to save money on home insurance..
What Is Covered by Home Insurance?
Home insurance protects you and your lender from damage caused by unforeseen events, like a devastating fire erupting from the basement, a lawsuit from an unfortunate visitor who has a slip and fall, or a thief who takes all your valuables while you’re on vacation sipping fruity drinks on the beach.
But a standard homeowner’s insurance policy doesn’t cover every possible natural disaster. For instance, it never includes protection against floods and earthquakes; you have to buy separate policies for those.
Home insurance includes the following 4 basic types of coverage:
1. Your home’s structure, such as the roof or walls
2. Your personal belongings, like furniture and clothing
3. Liability for issues like getting involved in a lawsuit
4. Additional living expenses if you can’t live in your home during renovations
What Factors Affect Home Insurance Rates?
The price you have to pay for this protection depends on many factors concerning your home and you.
For instance, the home’s age, location, and construction type play a huge role in your rate. But there are personal factors too, like whether you smoke, have a history of making home insurance claims, and have good credit.
After you pay off a mortgage and own your home outright, you aren’t legally required to have home insurance. However, it’s still a good idea to have enough coverage to protect your finances.
Here are 5 of the best tips to save money on home insurance......