Home and Wealth

Update your home insurance and save money too!


Once a year it's a good idea to update your homeowners insurance. You want to make sure you have adequate coverage if you experience a loss. And you want to check on all the options insurance companies offer to reduce annual premiums. Here are the steps to take.

Calculate the coverage you need on the house itself. Homeowners insurance pays what it will cost to rebuild your house. You can arrive at this amount by multiplying your home's square footage by the building cost per square foot for homes in your local area. Get this number from realtors, local homebuilders' associations, and insurance agents. Be sure to check on the building cost number each year, as it can change, leaving you with inadequate coverage.

Make sure your home's contents are adequately covered. Check your policy to see if you have "full replacement value" coverage for your home's contents. If you don't, the insurance company can give you a pro-rated value for these items -- a reduced amount that accounts for age and wear. In any case, valuable items such as jewelry, art, and antiques should be insured for their actual replacement value on a separate rider. You pay more for this coverage, but you will get full value for the item in case of a loss.



Take photos and videos of your home and contents. Cover every nook and cranny and put the pictures and videos in a safe deposit box. You might also save them online. Then if you have a loss, you have proof of the quality and condition of your home and its contents before the disaster.



Ask about premium discounts. There are many ways insurers discount their annual premiums. Higher deductibles or a good credit rating can earn you discounts. Purchasing your auto insurance from the same company may reduce premiums. Discounts can also come from: smoke detectors, sprinkler systems, fire extinguishers, being over 55 or a longtime policy holder, security alarms connected to an outside service, or hurricane shutters. But don't let price be your only concern. First and foremost, make sure you're dealing with one of the reputable, reliable insurers operating in your area.

BREAKING NEWS!

• Mortgage rates hit historic lows. Mortgage rates are back where they were in the 1960s when cars had tailfins. So if you or someone you know may be in a higher interest rate mortgage, call or email us today to see if there's money to be saved!

• Low rates and today's home prices also make homes more affordable than they've been in years. So anyone thinking of buying might want to make a move now.