by Russ Wiles - Sept. 30, 2011 04:28 PM
The Arizona Republic
The hailstorm provided a wake-up call on the importance of nuances in homeowners' insurance coverage, especially for hail victims who found their coverage lacking. Here are some homeowners' insurance tips from the Insurance Information Institute:
-?Make it cost-effective. You can cut your homeowners premium in several ways, such as by opting for higher deductibles.
"Since most people only file a claim every eight to 10 years, having a higher deductible saves money over time," says the institute.
It's also smart to shop around for insurance.
-?Look for discounts. You often can cut costs by installing certain safety devices in a home, such as smoke detectors, fire extinguishers, sprinkler systems, burglar and fire alarms and deadbolt locks.
You also can garner a discount by combining home, auto and other policies with one insurer. Other discounts include those for people 55 and up.
-?Watch for red flags. Certain factors can point to costly repairs or insurance problems down the road, such as the condition of a roof, the age of a home, its plumbing and electrical systems and the distance to the nearest fire station and hydrant. Swimming pools are a feature that can increase your liability.
-?Know what's excluded. Standard homeowner policies don't cover risks such as earthquakes and floods. You can obtain coverage for these perils but at extra cost. Also, find out whether your policy provides more-valuable "replacement-cost coverage" or less-desirable "actual cash value" protection.
-?Consider an inspection. It might be worthwhile to pay for an independent evaluation of a dwelling, especially if you're a prospective home buyer. An inspector can check for water or pest damage, the condition of electrical and plumbing systems and more. Companies such as ChoicePoint and ISO sell reports detailing past insurance claims on a property.
-?Monitor your credit. Insurers check homeowner credit records to set premiums and even decide on coverage. Information in credit reports is used to calculate credit scores, which many insurers rely on. It's important to verify your reports don't contain inaccurate information that can hurt. It's also smart to pay bills on time and practice other behavior indicative of responsible credit oversight.
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