Good morning. If you are shopping for new home insurance for your first home or you are shopping around to find better home insurance you probably have a million questions…the main question being how do I know if I am paying too much for my home owners insurance? One of the main mistakes that people make when they are shopping around for home owners insurance is over paying for their monthly home owners insurance premiums.
Shopping for home and contents insurance
This is not only true for home owner’s insurance but for most types of insurance including travel insurance, life insurance and auto insurance. Some people find that paying for an insurance policy is an unnecessary expense but the truth is that it is probably cheaper to pay for insurance premiums than it is to replace all of your personal contents if your home is ever damaged or if you experience theft.
Home contents insurance is insurance that covers the cost of all your personal belongings inside your home. Home contents insurance includes items such as your electronics, your appliances, your furniture and your clothes.
Use these 3 tips to make sure that you don’t overpay for home and contents insurance:
1. Take an inventory of your personal contents. The best way to make sure that you don’t overpay for your home and contents insurance is to know the exact value of your personal belongings, or at least an estimate of the total value. Take an inventory of all of your home furnishings and personal items to make sure that you purchase enough home and contents insurance to cover your costs in case your home is damaged. An inventory can be a physical list or you can take photos or a video of all your personal contents.
2. Keep your receipts for everything. My boyfriend and I keep a metal box full of our receipts for all of the electronics that we purchase. The receipt is proof of our purchase and extended warranty but it also acts as a way for us to keep an inventory in case our items are ever damaged or stolen. Many insurance companies will give you the current market value of your items if they are ever damaged and the receipt (with the date of purchase) will help the insurance company determine the current market value.
3. Try to salvage what you can and then claim everything. If your items are damaged due to water or fire or if they are ever lost due to theft there is also some sentimental value that may be lost. People like to try and salvage all the items that they can during a flood or a fire but the truth is that it may be better to replace your items rather than try and keep damaged items. When our house flooded a few years ago my dad tried to keep anything and everything that he could because he had a personal attachment to all of the home furnishings that he worked so hard to afford.
Photo by moyanbren