Whether you own your home outright or are still paying off a mortgage, it’s wise to have homeowners insurance. Mortgage lenders typically require it and can help you avoid financial pitfalls should disaster strike.

Homeowners insurance costs vary greatly depending on several factors, including where you live and the likelihood of natural disasters. However, there are steps you can take to keep your premiums affordable.

Make Sure It’s Insured

Homeowners and renters must understand their homeowners insurance Newark DE options and coverage. Buying the right policy can save money, protect valuable possessions, and protect against liability for accidents at or away from home. Stauffer recommends shopping around and asking for quotes from multiple agents or brokers. He also suggests providing your agent with detailed information about your home’s size, layout, distinctive features, and a complete personal property inventory to get the most accurate quote. In addition, he suggests reviewing your policy at least once per year to ensure it stays up-to-date and accurately reflects the value of your home.

Take a Look at Your Credit Score

The higher your credit scores are, the more money you might save on a home insurance policy. However, it’s essential to understand that credit reports can also impact you in other ways. For example, with your permission, employers can review your credit reports when you apply for a job, and some cell phone companies and utility services may ask to view your information to determine deposits or service eligibility.

Consumers should regularly check their credit reports to ensure the accuracy of information and make timely payments to avoid late charges. They should also check to see if they are eligible for group coverage options through their credit or trade unions, employers, association memberships, and other sources. Those who own their homes outright might even see premiums drop since insurance companies assume those homeowners will be more likely to take care of the property.

Don’t Add High-Risk Property to Your Backyard

When it comes to homeowner’s insurance, there are many factors that insurers take into account when calculating premiums. Homeowners should work to lower their risk profile by making sure to check in with their agents regularly and keeping their credit report updated, as well as taking steps to improve the safety and security of their property by installing smoke detectors and fire alarms, maintaining yard maintenance and avoiding unsafe activities like swimming pools, trampolines or having wild or aggressive animals on the premises. By lowering their risk profile, homeowners can secure standard policies that are less expensive than high-risk options.

Keep a Home Inventory

When it comes to personal property coverage in your home insurance policy, a well-organized inventory can make all the difference in settling an insurance claim quickly and accurately. It can also help you determine if you need to increase the personal property coverage in your policy or if you need to add additional coverage for high-value items like jewelry and art.

A household inventory can be as simple as a list and receipts or as detailed as a photo or video file on your computer or smartphone. In the case of a digital format, storing it in multiple places and making regular backups ensures that it will remain accessible even if your physical copy is destroyed.

It’s also a good idea to review your inventory annually to account for new purchases or items in storage. Be sure to include the serial numbers of any expensive possessions, and remember that you may need additional coverage for items kept in off-site locations such as a self-storage facility.