Anna Maria Island Real Estate Sales Blog

Here's an article that just came to me via email from the Florida Association of Realtors. I'd like to add a couple of additional caveats:

-- If you're in a flood zone, you'll save money with a property built since 1978 or so, particularly if it's elevated. That way, flood waters sweep under your first living floor, and your premiums are a lot less than if you're in the base flood plain.

-- When you're looking to buy, seek a concrete block home with a hipped roof (that is, a roof that comes down to the top of the highest wall without a gable) to save up to about 30% over other structures.

-- Get a wind mitigation survey from an inspector to see how better to protect your home from windstorms.

-- Provide your insurance company with a four-point inspection to show them your older home complies with current safety practices, like having electrical breakers instead of fuses, tie-downs from roof to rafter and rafter to plate, and so forth. You'll save money in the long run.

So read the article below to glean additional tips. And work with your insurance company to reduce your risk -- and your premiums!

John

Homeowners insurance: Tips for reducing premiums

ORLANDO, Fla. – July 29, 2008 – Property insurance can be expensive, and many homebuyers don’t fully understand what they’re buying or how they can save money. The general key: Pay for adequate coverage without being grossly underinsured.

Homebuyers and owners should consider the following when trying to save costs:

• Determine the limits you want on your homeowners insurance, what value you need to insure, get multiple quotes.

• Consider purchasing your homeowner, auto and umbrella insurance with the same company so a multi-coverage discount will apply.

• Having smoke, burglar alarms and a sprinkler system could mean bigger discounts.

• Get a quote for insurance that would pay to replace your belongings, rather than pay you based on their depreciated value.

• Ask your agent what documentation you need to substantiate a claim, in case of theft or fire. Make sure you videotape all of you personal properties including what is in the drawers and cabinets and send the tape to someone you trust for safekeeping.

• Make sure you carry enough liability coverage to protect you against a lawsuit if someone slips, trips or gets hurt on your property.

“Always read the policy when you receive it and ask your agent to slowly and carefully explain any provisions you don’t understand,” says insurance lawyer Frank N. Darras. “Finally, never buy insurance from a company you don’t recognize.”

© 2008 FLORIDA ASSOCIATION OF REALTORS®