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Protect Your Home and Your Wallet

If you own or plan to purchase a home, then you know that insurance is not just a luxury, it’s a requirement. While you should not skimp on certain coverage items, there are some steps you can take to reduce your overall premium.

If you have a security system installed (and operating!), you might lower your premium by 5% or more. You'll just need to provide your insurer with a copy of your contract or latest statement. Also, while newer homes have smoke alarms already installed, hooking them up in an older home might also reduce your premium by as much as 10%.

Just like health or auto insurance, if you increase your deductible on homeowners insurance, you'll reduce your premium. Just be sure you're prepared to pocket smaller repairs like broken windows or damages from leaks.

If your policy is held by a company that also offers auto or health insurance, look into discounts for multiple policies. You could save a percentage on both your homeowners and auto policies, for example.

Another money (and time and stress) saver is to document everything in your home with a photographic inventory. Store photos, cds or videos in a fireproof box or, preferably, a safe deposit box off site. This will reduce the time and effort required to complete a claim, and guarantee an accurate replacement payment.

Gabe Sanders and Susan Maxwell

Stuart Florida Real Estate

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Posted by Gabe Sanders, Stuart Florida Real Estate on 10/31/2009 07:28 AM

Comments (53)

Insurance in the Home Buying Channel

insurance, protection, deductible, gabe sanders, susan maxwell

This post has been included in Florida Information Martin County, FL Information
Post is included in group: Advice for Buyers
Post is included in group: 1st Time Buyers

53 Comments on Protect Your Home and Your Wallet

OCT

I was in Florida after Andrew and I would add to your post and say make sure you are dealing with a company that can pay out if a big disaster strikes

As Charlie already alluded to...dealing with hurricanes is a big issue. The documentation will certainly pay for the time it took to put it together. Some folks forget to store the documentation off site!

Gabe, I agree on the importance of insurance coverage. I recently reviewed our auto and home insurance and saved quite a bit of money after determining we had alot of unnecessary coverage.

It's just fundamental.

I would add one thing. Don't make nuisance claims. I've had several home buyers rejected by insurers because of numeroud claims for their previous home. Insurance companies keep track of claims made and the coverage is best saved for catestrophic or large money needs.

Gabe:

That is an interesting statement about smoke detectors. They are mandatory for any real estate sale in my state. It sounds as though that is not the case in Florida. A security system can definitely help on the insurance premium.

Gabe...

If I am guilty of anything, it is the fact that I am over-insured. I want the maximum amount of coverage possible.

Excellent post and a well-deserved feature. Congrats.

Charlie and Gary, yes very true. Also, there are independent adjusters that can help you if you have a dispute with the insurance company.

Thanks Barbara.

Lenn, very true. If you make a claim that you know won't exceed the deductible, it may just raise your premiums in the future.

Claudette, on older homes, smoke detectors are still not mandatory for the state. But the insurance company may require their installation.

Thanks Richard.

Gabe....good advice.....one additional point: if you should have a claim, remember to call a "public adjustor".....he will represent you, not the insurance company and will negotiate the best deal for you...he gets paid only if you accept the payoff figure he presents to you.....they usually make 10% of the proceeds...but you'll still make out better than dealing directly with an insurance co and its adjustor.....I only put in claims if they are major(in the thousands)....nothing minor....I take that stuff on the chin.

Gabe,

Congrats on the feature ~ this is something I know I should do (the photo inventory) but haven't done.

Mike inTucson

Excellent point Barbara.

Get to it Mike! :-)

Gabe, Congratulations on the feature!!! Yes, a photo inventory of your home is very important. I have done that with my video camera...

Very good tip everyone needs to use. I am getting my canera out now. Thanks

Gabe: Documenting contents is so important. So many people don't it. If an insurance claim is file and supported with documentation, insurance companies do tend to pay quicker with less hassle. Thanks for your post.

Don't forget to use an impound account.

Gabe, Having the inventory of your home documented helps you and the insurance company at a time of crisis. Great post and congratulations on the feature! Nicely done! I'd like to re-blog as well.

It is such a little cost if you divide into a daily rate, and yet look at the amount of money it could save you. Documenting your property by photos is a great way to keep a track of what you own. Great post.

I would add become familiar with the little details of insurance because too often we learn about coverage that clients could have had after disaster strikes. Years ago, a client who closed had a surface drain that got clogged with dirt. We had a torrential rain, and the water diverted into the garage instead of the drain. The damage was not covered. I found out that you could have surface and french drain coverage instead of opting for expensive folld insurance since this was not a flood zone area. I now regularly consult with insurance agents. It also paid off on my Lexus. I opted for $100 a year windshield breakage coverage. With the sensors in the windshield when I had a replacement it would have been $2500 without coverage.

Great blog about the importance of our homeowners insurance, Gabe. If the consumer is fortunate to have an insurance company that has good auto and home coverage you can get a hefty discount for coverage for both together.

That is excellant advise regarding keeping a photo journal of your stuff. I do not recommend putting it anywhere that can be accessed on the web. You don't want some hackers to find out you have a $10,000 gold medalion so they can come and rip you off. Safeguard your pictures and your inventory.

Charlotte Homes For Sale

Thanks Michael,

Way to go Craig.

You're welcome Kathleen.

Andrew, you got me, I'm afraid I don't know what an impound account is.

Thanks Wanda, go right ahead.

Thanks Corinne.

Great info, thanks Joe.

Thanks Sharon.

Thanks Eric.

Gabe - May I add, in Florida you can get discounts for hurricane-resistant features, like roof-strapping, hip roofs, etc. Check with your insurance carrier and provide photos, builders statement or get the inspection. Also, pull out drawers and take photos! Open cabinets, take photos! Great reminder on inventories. Last, never forget about flood insurance even if you are in a low-risk area, like zone X. 25% of floods occur in these areas.

Thanks...I always tell my buyer clients to change the locks on the doors and to keep a phot journal of their home at the closing table...Not sure how many do it but it gives me peace of mind knowing I have at least had the dialogue with them.

Gabe One important item is to correct minor issues yourself and not file a cliam - it affects the CLUE

Great tips Wendy, Thanks.

Very good advice Penny.

Thanks Karen.

Good article Gabe. Doing a photo shoot of your property is a must. There are home inspectors that can complete the paper work needed to get discounts in Florida related to hurricane features. Gable roofs etc...

Very true, Thanks Bryant.

Thanks for good read today Gabe. You never know when you might need insurance so I'm a believer in getting as much as possible.

Patricia/Seacoast NH

Your welcome Patricia.

Well done Gabe, and I would like to compliment the commentators as well. Good stuff. Parked

Thank you for this fun and informative post! Excellent work. I appreciate it.

That is good information Gabe. Having the right insurance coverage is very important.

NOV

The only thing I would add to your post is to always compare apples to apples. The time to find out the differences in coverage is not when you make a claim.

Thanks Gabe!! Every dollar counts nowadays!! Gotta love those chirping smoke alarms with a nine-volt battery that has gone defunk!! ;) All the best!!

Thanks Daniel and Tigard.

You're welcome Kyle and Stephen.

Yes, very true Damon.

Thanks for the reminder. This is always good information to have. I try to utilize all of your tips.

Gabe -

I have been writing title insurance for over 30 years and for the first 20 I thought it was the biggest scam! I had NEVER seen anyone make a claim.

The past 10 years made me a believer. Out of the woodwork some absure document can come and put a claim on a whole condominium project - or maybe some I wasn't dotted or T crossed in an estate from a previous owner. In any case, these problems do in fact occur and I now require anyone that refuses to get title insurance to sign a WAIVER that they refused to purchase the title insurance. I don't want anyone coming to me saying they did not have the opportunity to protect themselves - When It Is TOO LATE!

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

Thanks Bernadine and Richard.

That's good advice Gabe. I used to be in Insurance Claims. Most people get it automatically, but make sure you get a Replacement Cost Policy.

Great ideas and important ones to remember in helping us reduce costs. We can all use a little help in that.

Thanks Marian.

Hi Gabe...I like the idea of video and cds of the home and contents as proof when there is a claim.

Jerry Gray CRB,CRS,GRI / Prudential Carolinas Realty / Winston Salem, NC

Gabe,

Thanks for this timely blog! My insurance is due soon,and my previous insurance company was sold to another company. I got a large increase in my premium! I'm now shopping for a company that's not going to cost a month's commission check!

Kathy Opatka

Thanks Jerry.

You're welcome Kathy.

Insurance is great but insurance companies are raping us...

Good post. One of the basics that Realtors and mortgage brokers overlook.

NOV

And don't forget that most homeowners policies are based on replacement value. There is no need to insure the replacement cost of your land if your only concern is fire (erosion, flood, etc may negate this comment). Don't let your lender mislead you- you need to insure the value of your promissory note. Yearly inflation adjustments should not be placed on the value of the land. It is what it is!

Great pont Martin, Thanks.

Thanks Mike.

Insurance can often get overlooked when working with buyers. All home buyers must have it to get loan approval. However, I think it is an important issue that needs to be brought up early on in the process. As you said, there are several sets that can help lower premiums. Being able to save 5-10% or more on those costs really will save your clients money in the long run. Thanks for the tips!

Hi Gabe,

Good advice! I couldn't imagine trying to inventory my belongings if anything happened. Time to get to work taking pictures!

Your welcome Will.

Thanks Maribeth.

NOV

I've got into the habit of taking a video of the home contents. I simply walk through the home. Open all the closets and take a video of all the interior possessions. When something is missing, you can't remember what it was

Great habit to get into Darrell.

NOV

Great advice Gabe. I have done most of these things already. However, I still need to work on that firebox. Thanks

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