One of the biggest investments a person can make in their entire life is to purchase a property. Managing and maintaining it, however, requires money too. Therefore, home insurance should be a fundamental part of a home owner’s budget.

When gathering home insurance quotes it is important to visit as many known and established companies as possible. Due to the amount of providers, competition is high and prices can vary dramatically.

A home in Louisiana damaged by Hurricane Katrina

Image via Wikipedia

Finding an affordable and beneficial cover is not as hard as people may first assume. Comparison sites are extremely helpful in determining which insurance provider will offer you the best deal. However, the major problem with these types of sites is there tendency to slightly alter the policy from company to company. For instance, some companies include hurricane, earthquake and flood cover onto a policy, whereas others will leave it as an option.

Before signing on the dotted line, ensure that the following steps have been exhausted:

Combine Insurance

For those who already have taken out a different type of insurance policy with a company, their first port of call should be their existing provider as many insurer’s offer discounts for combining two or more policies. This discount can even reach up to 15% in some cases.

Choose type of Coverage

Building insurance covers any damage that should occur to the home, where as contents insurance covers the replacement of any possessions that are damaged or stolen from the property. These types of cover are usually combined into one single policy, offering a discount for combining the two. However, care needs to be taken when selecting which options apply to you and your home.

Raise the Deductible

Putting in a claim can be slightly tedious; paper work, telephone calls and reference numbers can cause many people to avoid the hassle. Many of those who already pay for insurance on their home choose to pay for minor repair work with their own money instead of claiming. Therefore, in this circumstance, raising the deductible on the policy is advisable.

The deductible (the amount that an individual is required to pay before making a claim) will cause monthly payments to reduce, allowing families that extra freedom to spend their finances on more enjoyable things.

Review all Contents Regularly

Anything within the home that is of significant worth or is of sentimental value should be included in the policy. However, as people progress in life, their belongings and contents of their home change. Also, when tenants or family members move out, they take with them their possessions. Many households are paying for cover on contents that they no longer own or use. Reviewing your policy regularly is highly advisable to avoid paying for unnecessary cover.