12 Tips to Lower Your Homeowners Insurance
No matter who you are, we all want to save money wherever we can. So our friends at the Insurance Information Institute created this great list of 12 Tips on how to save money on your homeowner’s insurance costs.
1. Shop Around
Just like any other commodity, there are fluctuations in prices. Take some time and do an apple to apple comparisons with other insurance companies.
2. Raise your deductible
If you’re able to handle a higher deductible if something goes wrong at your home you can save considerably on your premiums. Consider moving from a $250 deductible to a $500 or to $1,000. You can possibly see some great savings.
3. Don’t confuse what you paid for your house with rebuilding costs
The cost to rebuild a home is usually much more than what you paid for it. Building costs seem to always be rising. Make sure you speak to your insurer to have you covered correctly in case you need to rebuild.
4. Buy your home and auto policies from the same insurer
Bundling your auto policies with your homeowners’ insurance can save you significantly as insurers want to have all your business not just some of it.
5. Make your home more disaster resistant
Upgrading to higher quality materials in your home can make a difference in your premium. If you’re replacing your roof ask your insurer what materials they recommend to help. Having a battery backup on your sump pump may create a discount too.
6. Improve your home security
Having a home security system is always a good idea. See what your insurance company prefers and work with those guidelines.
7. Seek out other discounts
Insurers offer all kinds of special discounts depending on what company it is. Some offer long-term discounts for people who haven’t made any claims. Others offer discounts for veterans and service members.
8. Maintain a good credit record
Your credit standing is a major deciding factor in determining your premiums. Do your best to keep your credit from having blemishes.
9. Stay with the same insurer
Sometimes the commitment to the same company pays. You can check rates with other companies and compare them with what you currently have. Your representative may be able to find you some savings.
10. Review the limits on your policy and the value of your possessions at least once a year
Maybe you have some real expensive items in your home that are adding to your premium. Maybe not. Take a look around each year and see what you have. Maybe you don’t need as much coverage as you once needed.
11. Look for private insurance if you are in a government plan
Some areas of the country are in high-risk areas and may have only been eligible for government insurance plans. Check with private insurers and see if they offer coverage for your area now.
12. When you’re buying a home, consider the cost of homeowners insurance
They say location is the most valuable part of buying a home. It’s true when it comes to homeowners insurance too. Being located close to a fire hydrant or fire department can drop your rate. Additionally, the building material your home is made from makes a difference too. A log cabin will have a different rate than a brick home.
If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you’re shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowners policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance. Although you want to lower your homeowners’ insurance cost, you also want to make certain you have all the coverage you need.
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