Contrary to popular belief, the homeowners insurance has existed for more than 100 years. The history of homeowners insurance is something that most people don’t realize mirrors the reasons it’s recommended that homeowners purchase the insurance today. The reason the insurance was born was to protect the insured from financial loss. The reason homeowners get insurance now is to protect from financial loss in the event of a disaster.
The History of Homeowners Insurance
Fire was once the greatest disaster threat that most people thought of in crowded cities. This fear became a reality in 1666. In Europe, the Great Fire of London swept through the city and destroyed almost 90% of the buildings in the city. Since most of the buildings were made from wood and other flammable materials, once the fire started, it was hard to contain or stop. After the fire was done, those that came back into the city to see the destruction were devastated to find the charred remains of homes, businesses and churches.
One of the biggest questions that wealthy homeowners asked is what could they do to protect themselves from this situation again. This was the question that made some business owners think and begin to offer insurance policies. In 1681, the first insurance company was founded. The Insurance Office for Houses was born. They only offered protection from fires then but the idea was soon expanded.
The Reality of Homeowners Insurance
In today’s age, there are more threats that homeowners need to be protected from than fire. Now, homeowners would like to be protected from. Today’s homeowners insurance policies can protect homeowners from fire, flood, storm and sinkhole damage. As people learn what type of area they live in, they can customize their insurance policies to fit their needs.
Homeowners insurance isn’t something that should be ignored. While it can be expensive, it’s cheaper to pay the insurance premium than to replace a house filled with furniture, appliances and many other things at one time. For those that want to protect themselves from a financial hardship, homeowner’s insurance is worth the investment.
How to Negotiate Cheaper Premiums for Maximum Coverage
Most homeowners want the most insurance for their home for the lowest price they can pay. This is something that any homeowner would want if they want to save as much money as they can. For those that are serious, there are ways to save money while paying for homeowner’s insurance.
1. Compare Companies- Comparing companies is one of the best things that homeowners can do for themselves. Those that compare companies will realize not all insurance companies are the same and their money can go farther with one company than another.
2. Ask for Discounts- Insurance agents don’t always offer discounts to their clients. Those that ask for discounts are sometimes surprised to find they can save up to 10% off their quoted price. There are discounts for many things including living in a gated community, having new wiring installed, no claims, age discounts and many other things. Those that ask get the discount.
3. Review and Renew- Those that take the time to review their homeowner’s policies are able to see what they don’t need as time goes on. Instead of blindly insuring, it pays to review and pay for what is really necessary.
Saving money on homeowners insurance is something that anyone can do. All it takes is a little time and communication and modern homeowners can take advantage of the lessons learned hundreds of years ago.