Buying Life Insurance Guide

life-insuranceSecret #1: Don’t spend too much time on a life insurance quote.

Do not be fooled by the low price quotes you get online – they don’t apply to you unless you are extremely healthy. Statistically only 10% of people who apply actually get the lowest priced policy. The premium you end up paying has nothing to do with the initial quote you get online or from an agent. It is amazing to me how often I see people getting duped by an agent who quotes company X at a lower price than another agent.

Life insurance policies are the same price no matter who you buy from! One agent or website quoting a lower premium means nothing. Prices for any given policy is based on your age and health. There are a few exceptions to this but that is beyond the breadth of this article.

Most life insurance companies have 10-20 different health/price ratings and no agent or website can assure you the quote they give you is accurate. You have to apply, do a health check, and then go through underwriting (meaning you complete a mini-exam with a nurse in your home and then the company checks you doctor records and reviews and ‘rates’ your health) to get the real price of the policy. Remember that a health rating also factors in your family history, driving record, and the type of occupation you have. Only use quotes to help narrow down your choices to the top companies. You may want to consider a no load or low policy. The more that you save on commissions the more money builds up in your policy. You can even buy term insurance no load, and save a lot on premiums. You will not get the help of an agent, which may be worth something if they are very good.

The most important factor determining price is matching your particular health history with the company best suited for that niche. For instance company X might be best for smokers, company Y for cancer survivors, Company Z for people with high blood pressure, etc.

Secret #2: Ignore the hype on term versus cash value permanent insurance.

You can go crazy reading what everyone has to say on buying term insurance versus a whole or universal life policy. Big name websites give advice that I think borders on fraudulent. Simply put there is NO simple answer on whether you should buy permanent cash value policies or term insurance.

But I do think there is a simple rule of thumb – buy term for your temporary insurance needs and cash value insurance for your permanent needs. I have read in various journals and run mathematical equations myself which basically show that if you have a need for insurance beyond 20 years that you should consider some amount of permanent insurance. This is due to the tax advantage of the growth of the cash value within in a permanent policy. I am divorced and have taken care of my children should I die. I probably no longer need as much insurance as I now have. I have earned a great return on my policies and have paid no taxes. I no longer pay the premiums, because there is so much cash in the policies. I let the policies pay themselves. I would not call most life insurance a good investment. Because I bought my policies correctly, and paid almost no sales commissions my policies are probably my best investments. I no longer own them, so when I die my beneficiaries will get the money both tax free, and estate tax free.

Since most people have short term needs like a mortgage or kids at home they should get some term. Additionally most people want some life insurance in place for their whole life to pay for burial, help with unpaid medical bills and estate taxes and so a permanent policy should be purchased along with the term policy.

Secret #3: Consider applying with two companies at once.

Life insurance companies really don’t like this “trick” because it gives them competition and increases their underwriting costs.

Secret #4: Avoid captive life insurance agents.

Look for a life insurance agent who represents at least fifty life insurance companies and ask them for a multi company quote showing the best prices side by side. Some people try to cut the agent out and just apply online. Just remember that you don’t save any money that way because the commissions normally earned by the agent are just kept by the insurance company or the website insurance company without having your premium lowered.

Plus a good agent can help you maneuver through some of the complexities of filling out the application, setting up your beneficiaries, avoiding mistakes on selecting who should be the owner, the best way to pay your premium, and also will be there to deliver the check and assist your loved ones if the life insurance is ever used.

Secret #5: Consider refinancing old life policies.

Most companies won’t tell you but the price you pay on your old policies has probably come down dramatically if you are in good health. In the last few years life insurance companies have updated their predictions on how long people will live. Since we are living longer they are reducing their rates rather dramatically. Beware the agent may be doing this to obtain a new commission, so make sure it really makes sense.

I really am amazed at how often we find that our client’s old policies are twice as expensive as a new one. If you need new life insurance consider “refinancing” your old policies and using the savings on the old policies to pay for the new policy – that way there is no extra out-of-pocket costs. We like to think of this process as “refinancing your life insurance” – just like you refinance your mortgage.

Secret #6: Realize life insurance companies have target niches that constantly change.

One day company ‘X’ is giving good rates to people who are a little overweight and the next month they are super strict. Company ‘Y’ might be lenient on people with diabetes because they don’t have many diabetics on the books – meaning they will give good rates to diabetics. At the same time company ‘W’ might be very strict on diabetics because they are insuring lots of diabetics and are afraid they have too big of a risk in that area – meaning they will give a bad rate to new diabetics who apply.

Unfortunately when you are applying a life insurance company will not tell you, “Hey, we just raised our rates in diabetics.” They will just happily take your money if you were not smart enough to shop around. This is the number one area a smart agent can come in handy. Since a good multi-company agent is constantly applying with multiple companies he or she will have a good handle on who is currently the most lenient on underwriting for you particular situation. The problem is that this is hard work and many agents are either too busy or not set up to efficiently shop around directly to different underwriters and see who would make you the best offer. This is a lot harder than just running you a quote online.

Secret #7: Don’t forget customer service.

Most people shopping for insurance focus on companies with the lowest price and the best financial rating. Unfortunately I know of some A+ rated companies with low rates who I would not touch with a ten foot pole simply because it’s easier to give birth to a porcupine backwards then it is to get customer service from them.

Before I understood this I used a life insurance company that gave a client a great rate but 2 years later the client called me and said, “I have mailed in all my payments on time but just got a notice saying my policy lapsed.” It turned out the company had been making lots of back office mistakes and had lost the premium payment!

We were able to fix it because we caught the problem so early. But if the client happened to have died during the short period the policy had lapsed, his family might have had a hard time proving that the premium had been paid on time and they might not have received the life insurance money – a loss of hundreds of thousands of dollars in that case.

Secret #8: Apply 3-6 months ahead of the time you need the insurance if possible.

Don’t be in a hurry to get a policy if you already have some coverage in force. But go ahead and apply right away knowing that you might need months to shop around if the first company does not give you a good rate. Even though the life insurance industry is getting more automated your application will still often be held up for weeks or months while the insurance company waits on your doctor’s office to mail them a copy of you medical records.

If you are in a hurry and buy a quickie ‘no-underwriting’ policy without going through the full health checks and underwriting that a mainstream life insurance company requires, you will end up paying 20%-50% more because the insurance company will automatically charge you higher rates because they don’t know whether you are healthy or about to die the next day.

Secret #9: Avoid buying extra life insurance through work if you are healthy.

I am sure there are exceptions to this “trick” but I have rarely found one. By all means keep the free life insurance your employer provides. But if you are healthy and you are paying for supplemental life insurance through payroll deduction you are almost certainly paying too much. What is happening is that your ‘overpayments’ ends up subsidizing the unhealthy people in your company who are buying life insurance through payroll deduction.

Usually the life insurance company has cut a deal with your employer and will waive the required health exam for all employees – instead they just average the price for all the employees and offer one or two rates for males or females at any given age. Life insurance companies know they will pick up lots of unhealthy clients this way so they jack up the price on everyone so that the healthy people end up overpaying so that the unhealthy employees get a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you buy through work will get more expensive as you get older.

Also group life insurance is generally not portable when you retire or change jobs meaning that when you retire or change jobs you might have to apply all over again even though you will be older and probably not as healthy and risk being turned down for a policy. If the group plan does allow portability they generally limit your conversion choices and force you to go into expensive cash value plans.

I remember helping someone evaluate his supplemental life insurance. He was sure it was a better deal than any policy I could find him. Little did he know that the price of his group plan would go up every year? By the time he retired his premium would have risen to over $10,000/year. I found him a policy for around $1000/year that would never go up. Also, unlike his old group life policy, he could take the individual policy with him when he changed jobs or retired.

Secret #10: Do a trial application on a COD payment basis.

Only send money with the application if you need the life insurance coverage right away. Sending a check with the application is a traditional practice agents used to do – I think mostly because it got them their commissions faster. If you send money with an application you usually get temporary coverage immediately but if you already have plenty of coverage and are just trying to get better rates ask your agent to do a trial application on a COD basis so you only pay once the policy is approved. If you do not send money, and you die before paying for the policy there is no coverage.

Secret #11: Wear your shoes when the nurse measures your height.

When the insurance company sends out the nurse to do your health check try to be as tall as possible if you are overweight? In most states you are allowed to wear shoes and if you are a little overweight your taller height/weight ratio will look a little better to the underwriter who is determining your health rating and policy price. Also do your exam early in the morning with no food in you – this will make your cholesterol count and various health ratios look the best.

Secret #12: Be careful with extra perks and riders.

Most policies come with options like accidental death benefit, child riders, disability riders, return of premium etc. If you do the math on most of these “extras” they usually don’t make smart financial sense. Life insurance companies are out to make money and these riders are usually profitable because they either cover something that rarely happens or they are so stringent that the benefit never gets paid out. Keep things simple and focus mainly on getting a life policy to cover your life without many strings attached. Again a good agent can help you weigh the benefits of the extra riders. But be wary of an agent who tries to tack on every possible extra rider.


Tips For Achieving Home Insurance at a Lower Cost

Are you interested to buy a home insurance? If so, then you can now easily find a one among the many insurance companies offering insurance policies. Buying a home insurance is no more an expensive one. The best possible way in finding out the best insurance policy is by allowing a specialist broker on your behalf to search around for the best insurance quotes offered.

You will be provided with the best insurance quotes by them without moving out from your chair. Then, you can compare each of the insurance quotes with some of the top providers and thereby you can easily find out the best insurance company for which you will like to go for.

There are a few ways by which you can minimize the monthly premiums paid for your insurance. One of the ways is by increasing the excess amount that you will like to pay while you claim, if of course needed. Home insurance Blog reviews providers add the excess amount into their policy for benefiting their customers to save extra premiums which they had to pay otherwise. However, you need to keep in mind that you need to pay the excess amount to make a claim.

Insurance policies generally include any damage caused or theft of items from your home. Keeping your home safer to some extent can help you to obtain low cost this insurance policies. You can do so without much effort by installing a better alarm and as well as window locks in your house. Be ensure of the fact that whether your hard owned property is surrounded by good fencing or not.

As you already know that accident doesn’t come informing you. So, it’s better to keep precautions to avoid such circumstances. It is as in the case for your home too. Any loss of your belongings by fire also comes under this insurance policies. You can cut down the premiums for your home insurance by installing fire alarms.

At often, you can also be asked whether you are smoker or a non smoker. Being a non smoker, the chance of getting offered with cheaper premiums gets increased as quite naturally the risk of getting your house burned minimizes than those who smoke.

One of another way to obtain a cheap insurance blog reviews [] is by not renewing the insurance policy year after year. It is because even if you had obtained a great insurance deal last year, it doesn’t necessarily mean you can obtain the same in the next year. Insurance brokers of various insurance companies do usually increases the premiums paid by you each year. You can find that you are shelling more money if you renew your insurance policies. Search Blog Reviews [] to get the best website on home insurance online.


Helpful Home Insurance Tips

Getting home insurance deals are easy online. The problems many people face are where and how to get their preferred policy. The idea of moving from one insurance company to the other is no longer necessary and you do not need an agent to search for an insurance policy for you anymore. For the provider, everyday expenses like buying gasoline for vehicles, general maintenance, paying of employees and others are greatly reduced.

Apart from getting the policy online, you can also control the deal whenever you want. You can make repayments, renew your policy and make other corrections quickly without stress.

Below are some helpful tips on how to get the best, reliable and cheapest home insurance provider online.

Your deal will not remain the same every year. The price will definitely change as you renew your policy and as the year goes by. You should search for home cover quotes online and compare the rates you get. To do this, an insurance broker is not required and you do not need a direct transaction with the home insurance provider. You can do it yourself using your internet-connected computer.

Due to competition in the insurance sector, insurers have designed better deals to attract more business and new customers. In addition, if you have other things you want to insure, you can do that with the same provider and get multiple discounts. Remember, to get a cheap quote you need to compare home owner insurance quotes from different insurance providers.


Cheapest Home Insurance

This article is about other ways you can get lower rates. Also take note of the precaution you are advised to take as you make use of these tips…

Making sure your home’s landscaping is done right will lower your home insurance rates. There won’t be potholes that could result to injuries and that will lower your liability claims. Within this context, you’ll be saving yourself some cash while maintaining a more beautiful home. If you are still thinking about it then you should ask your agent for suggestions that could help you get a bigger discount.

Your premium will reduce if you maintain your home. Do you have dead limbs on trees on your property? They could raise a liability claim. Such a good maintenance culture would reduce your home insurance premium.

Lower your homeowners’ liability coverage while you get an umbrella policy instead and you’ll bring down your rate considerably. Why this is highly advised is that it even offers you better coverage for far less.

You buy home liability coverage to ensure you don’t suffer losses on account of injury to someone on your property. Furthermore, if a lawsuit emerges from such an injury, it also caters for it. However, every liability coverage has limits that might not even be enough to deal with certain lawsuits.

On the other hand, an umbrella insurance policy always gives huge coverage limits that can usually cover the craziest lawsuits for very insignificant premium.

You will be given one of 2 forms of homeowner’s insurance policies: A Named Peril Policy and an All Risk policy. You’ll enjoy coverage ONLY from perils that are clearly listed in the policy with a Named Peril policy. But with an All Risk policy, you enjoy coverage from all perils apart from those specifically excluded in the policy’s document.

The more affordable of the two is the Name Peril policy. However, carefully make sure that a named peril policy gives you enough coverage. If it doesn’t give you sufficient coverage then you are well-advised to look for other ways of saving. If you do otherwise you may get grave consequences and regrets.

Using the same insurance carrier for more than one policy will get you discounts. This is called a multi-policy discount and is available with all insurance companies. Although You will receive discounts for buying multiple policies from the same insurance company, you may save more by purchasing each of your policy from different insurers.


You will save a lot if you really have between 25-30 minutes. Visit, receive and compare home insurance quotes from selected insurance quotes sites. The lowest quote should be what you pick easily.

But, you have to look beyond simply the cheapest quote to the best price/value. The lowest priced may not be the best price/value for you as a person.


3 Important Home Insurance Tips

Home insurance is required when you have an active loan against your home. This regulation, however, is for the benefit of the home owner in the event a problem arises and a claim is needed. Making sure you have the proper insurance for your home is a responsibility every home owner must take. Using the following 3 tips should help you ensure that you are covered completely.

  1. Make sure that your policy covers the true value of your home. This is especially important when home prices begin to rise. If your home is only insured for the price you purchased it at you may not be able to replace your home at a later date. A yearly review of the value of your home and the amount it is insured for is necessary. It is also important to verify that you are covered for any mishaps that occur on your property. People that enter your property to visit or work must be covered in the event that an accident occurs.
  2. Make sure you understand what is covered and what is not and purchase the appropriate riders to cover any unforeseen event. Many home owners are surprised when they are subject to a natural disaster only to find out that their insurance did not cover the event. If you live in an area that is prone to flooding, large storms or even excessive snow, make sure that you are covered for any problems that could arise from these events. Many insurers will offer separate policies for these events and will not cover them unless the additional coverage has been purchased.
  3. Purchase separate coverage for your personal belongings. Most insurance plans will cover the replacement value of some of your interior items, but in general do not cover much. You must have contents insurance to cover your personal effects. Expensive jewelry, art work or antiques should carry a separate policy.

Insurance for your home does not have to be a complicated issue; the home owner just needs to take the time to make sure they are insured completely. Home insurance must be able to cover replacement of your home in the event of total loss and it must cover you for any events that take place upon your property. By familiarizing yourself with your policy, and making any necessary changes, you should find yourself covered for any situation that may arise.


10 Home Insurance Tips for Cheaper Premiums

The cost of home insurance is for many the deciding factor on whether they obtain a policy or not. Home insurance is typically insisted upon by mortgage providers, as your home is also their investment. You do not however have to use their recommended provider and can instead use any insurer of your choice as long as they provide an adequate level of cover.

Shopping around is certainly the best strategy for cheaper home insurance, there are however a number of tips which if heeded, could help you to get a cheaper premium:

  1. One of the biggest risks posed to your property is break-ins and burglary; this is why insurance companies place so much emphasis on where you live and the crime rate in that area. As a homeowner you can help to make your policy cheaper by making it more secure, this means installing a working (and recognised) burglar alarm, fitting security windows and doors.
  2. Neighbourhood watch schemes are more than purely a reason to peep behind those net curtains; they are also an excellent way to bring down the cost of premiums particularly when mixed with other security items such as motion sensor lights.
  3. Fire is another major threat to your property and as such fire prevention should be seen as an excellent way to bring down the cost of your home insurance. Preventative measures such as having your electrical systems checked regularly can help although fitting a smoke alarm is essential, not purely for your insurance but for the safety of you and your family.
  4. Consider obtaining your house and contents insurance from the same provider. Whilst this may seem like an ‘all eggs in one basket’ solution there are many insurers which will give a significant discount if both elements of the cover are purchased with them.
  5. It is worth balancing the cost of your excess and the price of your premium. Typically if you can afford to pay a higher excess this will result in a lower overall cost for the premium. Take care however, you should not make the excess higher than you can afford.
  6. If you can afford it is definitely worthwhile to pay any premiums annually, whilst monthly payments may seem like the more convenient option there is usually and surcharge for paying in this way.
  7. As a homeowner it can be wise to build up a no claims bonus with your insurer, this means not claiming for every little thing and occasionally biting the financial bullet for medium sized jobs. By doing this you make your insurance costs lower in the long term, leading to significantly cheaper premiums in the future.
  8. Check your house regularly for structural issues such as subsidence. Subsidence is extremely expensive to fix although it is much better to catch it early. This doesn’t mean you should be taking a spirit level to your mantelpiece everyday but instead just contacting your insurer or a professional if you start to notice cracks in the walls.
  9. Prepare for winter by insulating any pipes in your home effectively. Burst pies can damage both the structure, and fixtures of your home as well as contents and as such preventing pipes from freezing is an excellent way to protect against this risk.
  10. Finally, and it is worth noting again, you should take the time to shop around for the best deal.








Some Home Insurance Tips

There are probably as many different home insurance tips as there are varieties of home insurance. Top of the list of any helpful tips, therefore, is likely to be the importance of searching as exhaustively as possible for the particular insurance package that best suits your own needs and circumstances.

Fortunately, that is something made so much simpler these days by going online and using one of the several search engines that compares not only prices but also the features of the cover offered by a whole selection of different insurers.

Home insurance typically includes both buildings and contents insurance, so here are some home insurance tips based on the possible variations between the different packages that might best suit your own needs:

Buildings insurance

  • What’s covered exactly?– as you’d probably expect, most policies cover the permanent fabric of your home, especially to the extent that this ensures its structural integrity. But some policies also extend cover to such essential fixtures as bathroom and kitchens fittings, whilst others might cover boundary walls and fences or garages and sheds, too;
  • Risks– once again, most policies will typically cover a core set of risks – such as fire, flooding, subsidence, earthquakes, storms, impact by vehicles or falling branches and tress, and vandalism or malicious damage – whilst additional elements are reserved as optional extras (for which you pay an additional premium);
  • Options – examples of some these optional extras might include accidental damage to fixtures and fittings within the home; compensation for the cost of alternative accommodation in the event of the home becoming uninhabitable following one of the insured events; and public liability cover, giving you indemnity in the event of third party claims from those injured whilst on your property or those whose property is damaged whilst visiting you or who are in the vicinity of your home;
  • Excesses and discounts – rather like your motor insurance policy, home insurance policies also include compulsory excesses (the first amount of any claim for which you remain responsible). The difference here, however, is that the excess is likely to vary according to the type of building insurance claim you are making. Some home insurance policies also give you a “no claims” discount if you have not made a claim on the insurance in the previous year.

Contents insurance

  • What’s covered?– if it’s not an integral part of the fabric of your home, it’s likely to be covered by most contents insurance policies. The home insurance tips for contents insurance, however, probably feature even more variations in what is and what is not covered by any particular policy compared to another. Food in the house might be covered, for example, or tools in the garden shed, or even the family pet!
  • Risks– the contents of your home are exposed to the same set of risks as the building itself, with the addition of burglaries and theft (and the damage left in their wake). You might choose to extend that cover, however, to any accidental damage to your contents. If the policy does not already do so, you might also consider extending cover to those items which you frequently use outside of the home (a bicycle, for example, or a laptop or other portable equipment used at work, school or college);
  • Valuation and indemnity– the final home insurance tips for protecting the contents of your home relate to the importance of keeping your valuation of all insured contents fully up to date. If you are under-insured and the home suffers a major disaster, there might not be sufficient insurance compensation, of course, to replace all of your belongings. Keeping the overall valuation up to date like this is important whether you have chosen “new for old” cover (that replaces lost or damaged items at today’s replacement values) or “wear and tear” cover that deducts an element of the settlement amount to reflect the age and depreciation of the item or items.





Tips To Help You Reduce Your Rate

Direct line home insurance can be at a lower rate: This article is about other ways you can get cheaper rates. Don’t fail to take note of silly mistakes you’re advised to avoid as you apply these tips…

  1. It is more expensive and needless to insure the land on which your house is standing. Some folks spend much more than they should on home insurance on account of this mistake. You’ve made same mistake if you insured your home for the price you purchased it without checking the cost of the land it is standing on and deducting it.

For those who have mistakenly done this, call your agent and check your home insurance coverage again. Reduce your coverage to the worth of your home and its contents minus the cost of the land.

This implies that you’ll spend far less on home insurance. Bear it in mind that insuring the land your house is built on is real waste of money because it does give you any added advantage.

  1. Having window locks on each of your windows will help reduce your home’s risk of burglary. You will save even a lot more if you go one step more to get burglary-proof bars fitted on all of them. If you’re not one of those people who have a deep hatred for such, they’ll get you reasonable discounts. If you’re not one of those people who insist that having such makes them feel imprisoned in their own house, have them fitted if you want to lower your home insurance rates considerably.
  2. If your neighborhood has a neighborhood watch, that could fetch you some discounts. Most insurance companies offer discounts for this. Let your home insurance agent know if you have it in your community. It’ll be easier than you think to convince your neighbors to initiate one if they are told how much they’ll save in home insurance apart from the other advantages.
  3. The material you use in the construction of your home has much effect on your home insurance rate. Frame homes are more resistant to earthquakes while brick homes are more resistant to high winds. As a result, buying a frame home in the East will definitely cost you much more in home insurance. For those who stay in the West, they’ll spend more if they have a brick home. You’ll save a minimum of 5% if you use the right material for your home.
  4. Government home insurance policies could really be costing you more than what you can now get with private insurers. Some areas used to find it difficult to get home insurance coverage. Then it was just the government’s policy that could buy. The case is just different now as private insurers are beginning to cater for such areas.

Home Insurance Tips Some Facts to Note

Home insurance is a must have if you want peace of mind as a home owner or renter. Some policies are expensive and tend to be outside the reach of many home owners but on the other hand, there are time tested ways that will help you find affordable home cover deals that are comfortable with your income.

Most home insurance companies will provide cover for the home structure, contents and outdoor sheds.

The building insurance takes care of any damage to the home structure caused by storm, flood, fire etc. It also takes care of the repairs or a complete rebuild where applicable.

There are some damages that may carry limitations or are completely excluded e.g. damage due to old age, deterioration or subsidence.

The contents insurance takes care of furniture, fittings, clothing, ornaments and so on. In the event of theft or damage by either fire or smoke, the home contents policy takes responsibility for repairs and replacements.

There are some items in the home that may not be contained in the main policy but at the request of the home owner or policy buyer these items are included with additional cost. Items that fall into this class include rare jewelries, classic paintings etc.

There is also coverage for out buildings like gardens and garages. This coverage also protects the furniture outside the home. Be sure to study and research rates and services from many house insurance companies before buying your preferred deal.


Home Insurance Tips That May Help You Save Money

Buying insurance for your property and its contents may be a necessity for you but this doesn’t mean that you don’t have ways of making this process more cost effective. There are a variety of home insurance tips that may cut the costs of the prices you’ll be quoted whilst making sure that you have the right kind of cover.

Let’s take a look at some of the more popular home insurance tips.

  • Think about your needs — some people (usually homeowners) may need both buildings and contents insurance. Others may just need contents insurance. If you rent your home, for example, then your landlord is typically the one that has to deal with repairs to his/her building. So, buying this cover is not always a necessity in this case. If you own your home, then it typically will be.
  • Insure for the right amount — some people make mistakes when taking out home insurance and under insure or over insure. If you don’t take out enough cover then you may not be able to claim enough to cover your costs. If you take out too much cover then your policy payments may be higher than they strictly need to be. Building insurance is meant to be based on the rebuild value of your home and contents cover is meant to be enough to cover all of your possessions.
  • Home security — insurance is a question of risk and spending some time on improving your home security may make you look to be a lower risk to an insurance company. This may cut the costs of your premiums. Having things like alarm systems, decent door locks, window locks and smoke detectors may all count in your favour. Being a member of a Neighbourhood Watch scheme may also be a benefit to some insurers.
  • Look at the excess — this option may not suit everyone but it may keep premium costs low. Whenever you make a claim on a home insurance policy you have to deal with the excess agreed in it. This excess is the sum of money you have agreed to pay before the insurance company starts to cover costs. So, for example, if your excess is £100 then you pay the first £100 of any claim at which point your insurer takes over. If you voluntarily ask for a higher excess sum then you may find that your policy costs decrease a little. So, this may be worth checking out before you choose a policy.

These home insurance tips may help you save money on the costs of a policy. It is still important not to have cost savings as your primary focus to start with however. Putting the right kind of policy in place is just as, if not more, important.

Once you have done that by using these home insurance tips then you are ready to look at getting a really cost effective policy. Bear in mind that a home insurance specialist provider may be a good place to make a start. This may save you a lot of time and money as they may be able to compare quotes for you to show you your cheapest options.


Home Insurance Tips For First Time Homebuyers

Once you have found that special house for your first home then comes the bewildering buying process. Choosing the insurance required by your mortgage needs attention but is often overlooked during this unfamiliar process. Don’t shortchange this important protection of you new home. It is important to step out of the quick sale agenda of the home seller to understand what insurance you are buying, customize the insurance package and make you own selection of insurance company.

What is the “Hazard Insurance” that our mortgage bank is requiring?

For most situations, the “Hazard Insurance” coverage will be provided by a Homeowner’s Insurance policy. The mortgage bank’s concern is with the protection of their collateral (your house) from hazards of fire, lightning, tornado, etc. Your Homeowner’s Insurance policy includes coverage for these risks on your house but goes well beyond the banker’s requirement to include coverage for your possessions, loss of use and more.

What other insurance is being required?

Your mortgage bank may also be requiring Flood Insurance if your house is in a “Special Flood Risk Area.” In Texas, if your new house is located along the Gulf Coast your mortgage bank may also be requiring Windstorm Insurance.

How much insurance does our new house need?

The mortgage bank is looking for enough insurance to cover the loan. Often, a higher or lower amount of coverage is more appropriate. Your purchase includes the land, site improvements (fences, driveway, etc.) and your house. Figuring out a reasonable amount of insurance for the house is part of my job. Having an adequate amount of insurance to rebuild your house is important. At the same time, too much insurance is not a good value.

Why is buying your home insurance from a professional important?

Buying home insurance is far more than just meeting your mortgage hazard insurance requirement. Getting the right amount of insurance for your house, ample to rebuild but not more than is needed, is critical. An insurance professional can guide you to appropriate contents coverage and liability protection. While neither is a mortgage requirement, it is still important to you as the homeowner.

What insurance company should I choose?

Your mortgage banker or home seller likely will have a suggestion. My experience with letting the banker or home seller select a home insurer is, at best, mixed. Their key concern is selling you the mortgage and the house. Their focus is not on the long term viability of the insurer or service down-the-road. A couple of years ago, Texas Select Lloyds, then the sixth biggest home insurer in Texas, was suddenly shutdown by our Texas Department of Insurance – they had been a favorite suggestion of several of our local home builders for several years.

How can I reduce the cost of my Home Insurance?

Cost is important on any purchase including insurance. Buying a companion auto policy from the same insurance company often provides a 10% discount on both insurance plans. Choosing a higher deductible is a trade-off in risk but can reduce insurance cost. If you decide to have a monitored burglary alarm, be sure to ask for the insurance discount. Other discounts may be available. Too often I see first time home buyer overwhelmed by the buying experience while allowing important insurance decisions to be inadequately considered. Getting help to understand your home insurance choices is easy; call your insurance agent. If you don’t have a relationship with an insurance professional, this is a good time to start one.

David W. Crump, Ross Gray Insurance Agency

I specialize in Business, Health and Personal Insurance sales and service.