As the cost of living continues to rise, it’s important to know
about ways you can save on your home insurance policy while maintaining
the level of coverage you need.
Learn about the discounts that may be available to you, how rates and
coverage can vary from carrier to carrier and about the advantages of
shopping around periodically to make sure you’re getting the best
deal.
Whether you’ve owned your home for years or are a first-time buyer,
being an informed shopper empowers you to compare and choose the right
insurance company. Find the company that offers both the coverage you
need and the right price.
10 Steps to Saving Money on Home Insurance:
1. Shop Around
The easiest way to shop for a home insurance policy is to go to the internet. You can contact many different agencies to find the best policy for you; or you can go to a site like NetQuote where you can fill out one form and get several quotes from the top insurance agencies. Other options are to ask friends and family. All these choices will allow you to get a wide range of prices from several companies.
Price shouldn't be the only consideration. Your insurer should offer both a fair price and excellent service. Going with a company that has a better reputation may cost a bit more, but you buy insurance in case you need to make a claim, so it's important to get a company that has excellent service. The more insurers you talk to will you give you a better understanding on what type of service they give. Find out what they can do to lower your costs.
Check the financial ratings of the companies with AM Best or Standard and Poor's.
2. Raise Your Deductable
A deductible is the amount of money you have to pay toward a loss before your home insurance company will begin to pay. Deductibles on homeowners' policies typically start at $250.
If you increase your deductible, you might save:
$ 500 — save up to 12 percent
$1,000 — save up to 24 percent
$2,500 — save up to 30 percent
$5,000 — save up to 37 percent
These numbers will depending on your insurance company. However, if you have to make a claim, make sure you are prepared to pay your deductable.
3. Ask About a Multi-Policy Discount
Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.
4. Consider Insurance When Buying a Home...
A new home's overall structure, including heating, electrical and plumbing systems are probably in better shape than those of an older house. Your insurance agency may offer you a discount of 8 to 15 percent if your house is new.
Check the home's construction. In some parts of the country, you should look for brick on the East side of your house because of its resistance to wind damage. In other parts of the country, you should look for a frame structure on the West side because of its resistance to earthquake damage. Also, the closer your house is to firefighters and their equipment, the lower your premium will be.
Choosing your new house wisely could cut your premium by 5 to 15 percent.
5. Insure Your House; Not The Land
The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should. However, most insurers will guide you in the right direction.
6. Install Home Security and Safety Devices
If you have a smoke detector, burglar alarm, or dead-bolt locks, you can usually get discounts of at least 5 percent.
Choose wisely when installing sophisticated sprinkler system and a fire and burglar alarm that rings at the police station or other monitoring facility. Some companies offer to cut premiums by as much as 15 or 20 percent if you install these systems, but they aren't cheap and not every system qualifies for the discount. Before you buy, find out what kind your insurer recommends and how much you'd save on premiums.
7. Stop Smoking
Smoking accounts for more than 23,000 residential fires a year. Some insurers offer to reduce premiums if all the residents within the house do not smoke.
8. Ask about a Senior Discount
Retired people stay at home more. This allows them to spot fires sooner and they have more time for maintaining their homes. At some companies, if you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent.
9. Check Your Limits Once a Year
Compare yout limits in your policy to the valus of your posessions once a year. You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need.
10. Look For Private Insurance
If you live in a high-risk area-one that is vulnerable to coastal storms, fires, or crime-you should check with an insurance agent or company representative about a private insurance plan. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.
See how much you can save today on your home insurance. Get your free home insurance quotes today!
