It does not matter whether you are the owner of the house or a tenant, every one needs to have their home insured to protect from any disasters. There are few basic things which you must know before you buy a home insurance to protect your living.
- Area Crime Rate : For the calculation of your house risk, your neighborhood crime rates will also be evaluated. This is done based on the post codes. To adverse the effects of crime rates it would be helpful if you install safety features such as security alarms or dead locks and get discounts on your premium.
- Fire Hazards and Prevention : Try to check for the fire hazards and reduce risk from it. Update the faulty electrical wiring. You will be offered discounts if you have installed smoke alarms inside your house, but make sure that is working correctly by carrying regular checks.
- The Quality of Your Home : Your premium rate mainly depends on the age of house and the kind of material used for building the house. A brand new house will cost you less when compared to old house. If your house is built with light materials which can catch fire easily or which can easily get damaged by storm, then it would cost you more than the house built of sturdy materials. Do not buy cheap houses when you are looking for one, later you may end up paying more for your home insurance.
- Claims History : You will be branded as high risk customer by the insurance companies if you frequently make small claims. Evaluate each claim very carefully before filing and too many claims can rise your annual premiums.