Savism Forums - Insurance - Homeowners' Insurance Red Flags

Carrying homeowners' insurance is not only a wise thing to do, if you have a mortgage, it's probably required by your lender that you have at least hazard insurance. To protect your interests, however, you'll probably also want to buy comprehensive homeowners' insurance, including liability insurance and more complete hazard coverage than your lender requires. Of course, sometimes the unfortunate happens, but once you have a policy, protect it from rate hikes and possible cancellation by avoiding these red flags:

- Avoid filing small claims. Save on premiums by setting your deductible at $1,000 and cover repair costs for anything under (or even slightly over) this amount. You may even qualify for discounts for every year you do not file a claim.

- Be especially careful about filing for water-related damages. Insurance companies don't like to pay out, but most are even more wary of water-related damages because these can often lead to further costs down the line, like mold issues.

- Shop smartly and be a loyal customer. Once you have found a policy that provides the coverage you need for a reasonable price, don't switch to another company. You may qualify for good-customer discounts the longer you stay with one company.