If your home is being financed in other words, if you pay a monthly mortgage on your home then your mortgage holder requires that you carry homeowner’s insurance. But did you know that you are under no obligation to purchase any particular homeowner’s insurance? In other words, your lender cannot tell you which insurance company you must purchase a policy from, nor can they tell you which policy you must purchase.
And because you are free to purchase homeowner’s insurance from any company you wish, it’s possible for you to shop online and get the very best rates possible on homeowner’s insurance here in New Hampshire.
But before we do that, let’s consider a few simple steps you can take to lower your monthly premium as far as it can possibly go.
Do not try to save money by under insuring your home. If your home is destroyed your insurance needs to be sufficient to rebuild your home from the foundation up in today’s dollars. That means you may need to consult a contractor or, at the very least, a knowledgeable real estate agent in order to determine what the true replacement cost of your home is.
Insure your home and its contents for the true replacement cost in today’s dollars but do not include the value of the land upon which your home sits. You do not need to insure land only what sits on top of the land.
A great deal of your premium is based on the perceived fire danger to your home and to the possibility of a burglary. Therefore, if you take a few simple steps to reduce the threat of fire to your property, and if you make your home less of a magnet to burglars, your monthly homeowner’s insurance premium will reflect that fact and be considerably lower.
Start by clearing all brush and weeds and any trash away from all building on your property. Clear a space at least ten feet away from any building.
Add a few motion-sensitive lights to the property and trim any bushes around doors or windows which might provide cover for a burglar.
All exterior doors must have a working deadbolt and all windows regardless of what floor they are on must have a working lock.
Smoke and fire detectors must be installed as per the manufacturer’s instructions and each must have a working battery. Be sure to change batteries twice yearly, each time you set your clocks ahead or back an hour.
Your kitchen needs a fire extinguisher of the proper type for a kitchen.
If you can afford it, a security system that is connected to a third party which monitors your home night and day for fire and burglary can reduce your homeowner’s insurance by as much as 30% — and the monthly savings can go a long way toward paying for your new peace of mind.
Now it’s time to jump online and find at least two different websites that will allow you to make side-by-side comparisons of homeowner’s insurance and prices from a number of different insurance companies. By doing this you can feel confident that you have gotten the best rates on homeowner’s insurance that you’ll find in the state of New Hampshire.