If you are buying a home, in many cases the lender will require that you purchase homeowners insurance. However, many homeowners don’t actually understand what this insurance covers or how to save money on it. We’ll look at what you should know before you sign on a dotted line and start paying your monthly premiums.
Many Homeowners Policies Exist
Before you choose your home insurance in Chicago based only on the price, you should know that not every policy is build the same. The most common policy is HO-3, which protects you from disasters. However, some disasters may be excluded from the policy, so be sure to ask about that. Some examples of events that may be covered include floods, fires, thefts, and tornadoes.
Credit Score Matters
Your credit score has an impact on many things, including your homeowner’s insurance. In fact, it can drastically increase your rate if you have a less than stellar score. A survey done in 2015 shows that for those who have median or fair credit, you end up paying over 30% more than those with excellent credit. And for those with poor credit, you could end up paying double the amount.
Be Aware of Discounts
While your insurer sets rates based on the future risk, there are ways to drop that down in some cases. Having alarm systems, upgraded windows or roofing, deadbolts, and smoke detectors can sometimes make you qualify for a discount. In addition, if you choose to bundle your home insurance in Chicago with your auto or boat insurance, that can often make your premiums lower. It never hurts to ask about ways you can help yourself.
A Home Inventory is Essential
If you end up in a disaster and something happens to your home and belongings, you don’t want to be in a situation where your claim is denied. Keeping excellent records is part of that assurance. Build a home inventory list that includes all of your personal belongings, along with the price you paid for them or their appraised value. Keep that list online or in a safe place so you have access to it. You can also take video and photos of each room to help your case if something bad does happen.
If you’re looking for home insurance in Chicago, Business Name can help.
