Home Insurance - Smart Things People Can Do

In the area of home insurance smart people can do several things to help themselves. The insurance industry does several things regardless of insurance company or region. Therefore, there are a few universal rules that you can use to help yourself out. You can save money, headaches, and time if you play it smart. Here are a few smart things that you can do with your insurance coverage.

Raise Your Deductible

Raising your deductible is usually one of the smartest things you can do with home insurance. You don't have to raise it to an unreasonable amount. However, you can raise it a little bit and make a big difference. Raising your deductible has the effect of decreasing your premiums significantly. The idea behind insurance is to keep yourself from going bankrupt or affecting your lifestyle too negatively. The difference between a $1000 and $2000 deductible is not going to make you go bankrupt. However, if your house burned down to the ground without insurance, you would not be able to recover from that. Keep the big picture in mind with insurance. It's not there to fix every little thing about your house. It's there for catastrophic losses and to keep you from going in the hole.

Savings Account

Start a savings account for home expenses. This is similar to a health savings account, except its for your house. You won't be able to get one tax free, however, you can still put back a few dollars per month towards it. If you get an account built up that is bigger than your deductible, you will never have to worry about pulling any money out of your pocket in the event of a loss. Even if you get the account up to the level of your deductible, it is probably smart to keep saving. Then you can use the extra money for repairs and upkeep on the property. This way, you will be preparing for possible damage, one small step at a time, instead of unexpectedly and all at once.

Do Work Yourself

When you do experience a loss, determine what work you could do on your own. When you have a loss, there is a lot that has to be done to clean up. The insurance company will pay to get you back to the way you were before the incident. This means that they will clean, repaint, and do a lot of other little things to help. Instead of paying a contractor to do all of those little things, why don't you let them pay you? On the bigger things, you will probably want to have a certified contractor take care of them. However, whatever you feel comfortable with, go ahead and do it. Your insurance adjuster will have to pay you for the work you did. The idea is not to profit from a loss, but to get a little bit of extra money for doing things that you know how to do.

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