How Smart Homeowners Manage Their Insurance Payments
Friday, October 25, 2019, 6:00 AM | Leave Comment
Many responsibilities come along with owning your own home. Your insurance coverage is one of those responsibilities.
Here are some helpful tips on managing your insurance so you can be effective at doing so.
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Get the Right Insurance Policy
Getting the right insurance policy for your home should be your first step. You need a policy that will cover the entire present value of your home in the event of a disaster. You can also opt for insurance add-ons like liability insurance, flood insurance, and so forth. Ensuring you have the right type of insurance coverage and in the right amounts is the first step in managing your home’s insurance policy.
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Determine If Insurance Is Included in the Mortgage Payment
Unless you own your home free and clear, you have a mortgage payment that you make each month. Most mortgage lenders will require that you have home insurance throughout the duration of your loan. This is to ensure that their investment is protected. Often, your mortgage payment will include the cost of your monthly insurance. You should check with your insurance provider so you’re not paying for your monthly insurance premium twice.
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Automatic Withdraws
The insurance policy on your home is something you never want to worry about lapsing. One great way to ensure it never does is to set up automatic withdraws from your bank account for the payment. Regardless of whether your insurance payment is included with your mortgage payment or not, you should have the payment set up to automatically come out of your account when the payment is due each month. You do this once and you never have to fear missing an insurance payment for your home.
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Annual Policy Updates
Once you get your insurance policy picked out, you know how to pay it, and you set up automatic withdraws, you’re pretty much set for the long-term. However, you’ll want to reevaluate your insurance policy and its coverage limits on an annual basis. This way, if the value of your home has increased, you can increase your insurance coverage to match its new value. You never want to just stick with the same coverage limits for years on end as you’ll likely find that you won’t get the entire value of your house reimbursed if a disaster does happen.
As a homeowner, you want to make sure that your home’s insurance is set up and ready to go in case there is a disaster. While this task may seem a bit overwhelming at first, it’s fairly simple to do. Simply follow the four tips above and you’ll be able to handle this task in no time.
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