Home insurance is a requirement for many property owners. Even if you do not have a loan on your home, it is one of the most important financial investments you can make. Yet, many people want to ensure they are not overpaying for their coverage. They want the best rate for the right level of protection. With liability insurance, it can be hard to see the value. Yet, there are a few ways to keep your costs under control.
What a Normal Policy Offers
The Insurance Information Institute states that the average homeowners insurance policy has $100,000 in liability insurance. However, it recommends that most property owners maintain between $300,000 and $500,000 in some cases. The more coverage you have, the higher your costs are. Which is the right level for you?
Talk to your agent about recent claims in your area. Learn more about the risks in your home. It is also important to never underestimate the cost of a claim against you. A dog bite can cost thousands of dollars. If someone trips over a carpet and suffers a brain bleed, that can cost hundreds of thousands of dollars. Having too little coverage can put your assets on the line if a situation likes occurs.
What Can You Do to Lower Your Costs?
It’s a good idea to pay close attention to the risk factors around your home. If you want to keep your home insurance costs low, look for ways to reduce your risks. Here are some ideas to help you:
- Only hire insured and verified contractors. A common claim occurs when someone comes to the home, suffers an injury, and your policy has to pay for it because they do not have insurance.
- Keep your dog in your backyard and ask people not to pet it. Even small dogs can bite someone they do not know if they feel threatened. Don’t allow others to approach your dog on walks, either.
- Add security to your home where there are risks. For example, if you have a pool, have a gated fence around it that you keep locked. If you have a trampoline or other high-risk item at your home, be sure it’s out of reach for those who may be walking by.
Your home insurance agent can offer insight and support to you when it comes to managing your coverage. Tell your agent about the steps you take to minimize risks at your home, too.