How To Lower Your Homeowner’s Insurance
Most people need homeowners insurance and want to pay as little as possible for excellent insurance coverage. With a bit of research and homework, you can lower your insurance premiums without sacrificing coverage.
Getting several home insurance quotes costs you time, but not doing so could cost you more money. Talk to your friends, read online reviews, and call your state’s insurance department.
The National Association of Insurance Commissioners has helpful information for consumers who need to choose a quality home insurance company. State governments also may provide data on typical premiums charged by large insurance companies. Plus, some states list the number and type of consumer complaints against each organization.
Another idea is to review consumer guides and get online insurance quotes. But don’t buy just on the price. The insurance company should offer a low price for a quality insurance product.
Increase Your Deductible
Most homeowners insurance companies recommend at least a $500 deductible. But if you can afford the risk, think about boosting it to $1,000. This increase could save you 25% on your premiums.
But remember that you can have different deductibles for different coverages, so carefully review your policy before you make changes.
Don’t Confuse Home Purchase Price With Cost To Rebuild
The land below your home isn’t at risk when it comes to storms, theft, fire, etc., so you shouldn’t include land value when you decide how much coverage you need. If that’s what you do, you’re paying more than you should.
Purchase Auto And Home Policies From The Same Company
Some insurance companies offer auto, home, and liability protection, and they’ll take up to 15% off your policy premium if you buy all from them. But check that the combined price costs less than purchasing different policies from other companies.
Harden Your Home From Disasters
Ask your insurance agent what you can do to make your house more resistant to natural disasters. You might save money by installing storm shutters or purchasing more robust roofing materials.
Older houses can be improved to make them more resistant to earthquakes. Think about upgrading your plumbing, electrical, and heating systems to lower the risk of water and fire damage.
Enhance Home Security
You can enjoy a premium discount of 5% or more if you install a burglar alarm, smoke detector, or heavy-duty door lock. Some insurance providers will lower your premium by 15% if you put in a sprinkler system. Such systems don’t come cheap, but they could be worth the price over time.
Look For Discounts
Insurance companies offer many discounts, but they don’t provide the same ones. For instance, because retired people are at home more than workers, they suffer fewer burglary losses and could find fires faster. Retired folks also have more spare time to keep up the property.
If you’re at least 55 and no longer working, you could get a 10% discount from some insurance companies.
Don’t Change Insurance Companies Often
If you have maintained insurance coverage with the same company for 10 years, you could get a nice discount as a long-term customer. Some insurance providers will lower your premium by 5% if you stay with them for up to five years, while others offer 10% off if you are with them for six years or longer.
Go Over Your Policy and Value of Personal Belongings Every Year
Your homeowners policy needs to cover large additions to your home as well as significant purchases. But you don’t want to pay more for coverage you no longer need. If you have a fur coat that is 10 years old, it’s not worth its $5,000 purchase price. You would want to lower your extra insurance premiums and keep the money in your bank account.
If you want more information about lowering your premium, talk to several insurance agents. You’re sure to get some useful information when they know you’re shopping for a policy.