Keeping Nashville Covered – What Insurance Costs
You have found the ideal property to buy and are now weighing options to make sure the monthly payments of your mortgage and insurance are as expected. There are several factors that can affect the cost of insurance. Consider the deductible, the limits, and potential discounts as you work with your insurance agent to set up the protection of your home.
The deductible is the amount you will have to pay in the event of a claim. The higher the deductible, the lower your monthly premium will be. So if your priority is to reduce the monthly expense and you don’t anticipate filing a claim but know that you could financially cover a larger deductible, increase the deductible. If you expect that a loss is more likely to occur (living in a high theft area, living near a tornado alley, or anticipating losses due to children or pets,) you may do well to consider a lower deductible and pay more on the monthly premium.
The limits for which your property is covered also substantially impacts the cost of insurance. It is important to have your home and contents properly insured. Have adequate insurance to have your home rebuilt in the event of a catastrophe or replace all of your personal belongings in the event of a theft or total loss. Not having limits high enough could be detrimental, as you could have to pay out substantial moneys if a total loss happens without sufficient coverage. However, having limits that exceed your actual property is like throwing money out the window. Trying to over-insure your belongings or your structure also can appear suspicious. Your agent should be able to help ensure your limits are sufficient to protect your assets without over or under insuring yourself.
Another way to manage the cost of insurance is to discuss potential discounts with your agent. Possible discounts may be available for smoke and CO2 detectors, fire extinguishers, being close to a hydrant, being close to a fire station, or having an alarm system. Other discounts may be provided for combining with auto insurance or loyalty and longevity with a company. On the converse side, sometimes there are additional costs associated with having things considered potential risks on the property. These may include trampolines, swimming pools, and certain breeds of dogs or other animals.
I hope providing more information on the moving parts of the costs of insurance helps you better understand how to organize your finances regarding your beautiful home.