Insurance Blog, Home Insurance Blog, Life Insurance, InsWeb Insurance Blog

With the first warm days of the year upon us, spring always brings a renewed motivation for making improvements to one’s home. Whether you’re a “Hardware Store Warrior” building a new deck yourself, or if you’re simply hiring a contractor to add a patio, don’t forget to check what impact such improvements may have on your homeowners insurance policy — before you begin!

Home improvements can quickly add to a home’s value. Accordingly, you should do a quick comparison of the difference in homeowners insurance quotes with the improvements. It is not until a disaster strikes that many homeowners realize they haven’t reevaluated their coverage to include any improvements made to the house.

After undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy covers only the pre-improvement value of your home. The difference in replacement value can be very significant. Trusted Choice® reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowners policies to reflect these changes.

As the value of your home increases, you may experience a modest increase in your homeowners insurance as a result. There are many discounts available to you that may help offset any such increase. Have you added any new security devices to your home in the last year; perhaps deadbolt locks, window locks, a burglar alarm, or even smoke detectors? Insurance companies highly value the protection afforded by these types of safety devices and are known to reduce premiums by as much as 20% as a result. In the same fashion, you may also experience additional savings on your policy if you upgrade your home’s heating, plumbing, or electrical systems.

There are additional benefits to comparing homeowners quotes before any renovation. If you adjust your policy before the work even begins, you may be covered for any building materials you have in your house during the course of the project. With the increased heavy duty labor, you may be exposed to an increased level of liability and risk of home disasters. Incidentally, it’s a good idea to take “before, during, and after” pictures throughout the renovation. In the event of a claim, you may be required to provide justifiable proof. Likewise, it is also imperative that you make sure any contractors are properly licensed and insured with all corresponding documentation.

Beyond the home improvements at hand, comparing multiple homeowners quotes is an exercise that can uncover new discounts and savings. You should review your homeowners insurance policy at least every 12 months, or more often if your needs change. Significant discounts and savings may have become available since your last policy review. Even if nothing changed on your end, many insurance companies may have reduced homeowners insurance rates since your last review.

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Tax-Time: you’re either waiting for your gravy train tax refund, or you’re fearing the event of paying even more to Uncle Sam. Car insurance can take on a similar dichotomy, but the difference is that you don’t get a refund for overpaying for coverage — it just renews and overcharges you until you find a more affordable policy. Most people don’t see this, and miss out on hundreds of dollars in savings that could be used like a big fat tax refund.

Auto Insurance Quotes are Not Final: How to Make Them Lower
When you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.

Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?

Trying to Make “Accidents” More Affordable
Many drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.

Paying for the Policy in Monthly Installments
Just like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.

Overpaying for Tickets and Moving Violations
Perhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.

Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.

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