Following are 7 ways you can save money on your homeowner’s insurance policy.:
1. Comparison shopping
Don’t go with the first bid you get.
Shop around to find the best possible deal; call at least 3 different reputable insurance companies first, before choosing the one you’ll use.
Get the quotes in writing so you can compare the policy coverages line by line.
Keep in mind that a less expensive homeowners policy may not provide the best value.
If you live in an area prone to flooding or earthquakes your insurance policy may not include coverage for these events, so you may need to purchase endorsements in addition to your regular insurance policy.
Use the quotes you obtain as leverage if needed to get the best deal; insurance companies are competitive, so make this fact work in your favor.
Tips:
- ⬥ Ask friends and family who they use
- ⬥ Check review sites such as Yelp or Google for suggestions
- ⬥ Use the National Association of Insurance Commissioners (NAIC) website (may show typical rates and consumer complaints per company)
- ⬥ Don’t go with price alone. Make sure you have the right amount of insurance at a fair rate.
- ⬥ Don’t forget customer service. In the event that you need to make a claim you want to deal with friendly, helpful individuals who can help with the process.
- ⬥ Ask each insurer what they would do to help you lower your insurance costs. This one thing alone can indicate the type of service you can expect when dealing with them.
- ⬥ Use Standard & Poor’s and/or A.M. Best to check the financial stability of the companies you’re considering.
2. Install a home security system
Did you know that you could save as much as 15 percent (or even more) if you’ve set up a monitored home security system?
Your home is up to three times less likely to be burglarized if you’ve installed a security system, hence the reason for the discount.
Other possible discounts:
- ⬥ dead-bolt locks
- ⬥ smoke detector(s)
- ⬥ bundle auto with home
- ⬥ new construction
- ⬥ loyalty
- ⬥ construction type (e.g. fire-resistant roof)
- ⬥ sprinklers
- ⬥ fire alarm (with central monitoring)
- ⬥ paid in full
3. Increase the deductible(s)
It’s well known that higher policy premiums often coincide with low deductibles.
The obvious way then, to lower your premiums is to raise your deductible.
Just doubling your deductible from $500 to $1,000 can reduce your premium by about 25 percent!
Note: If you live in an area prone to disasters your policy could have different deductibles, depending upon the claim.
(e.g. flooding vs non-emergency household claims)
4. The “Goldilocks Rule”…don’t pay for coverage you don’t need
You may have been warned against being underinsured, but what about being overinsured?
To keep more of your hard-earned money in your pocket review every item listed on your policy to make sure you’re only paying for what you need.
For example, if you’re paying insurance on something you no longer own have it removed from coverage.
Remember…you only need to consider the cost to replace your home and its contents in the event of a loss; the value of your land is irrelevant when deciding how much insurance you need.
5. Bundle your policies
An easy way to save on your homeowner’s insurance is to bundle your home and auto policies with the same company. Not only will you pay less, but you’ll have one bill instead of two…a definite plus!
You could save anywhere from five to fifteen percent off of your premium, so this is definitely a strategy worth looking at.
6. Good credit
If you’ve got poor credit you will very likely pay more for your homeowner’s insurance.
Why?
Insurance companies believe that if you have a poor credit history you’re more of a risk to insure than if your credit is good.
When you maintain a good credit record – or improve the one you have now – you can lower your homeowner’s insurance premiums.
7. “Disaster Proof” your home
Finally, ask your insurance agent how you can improve your home’s ability to withstand windstorms or other natural disasters.
Adding things such as storm shutters or beefing up your roof can help your home combat the elements.
Even older homes can be retrofitted to make them more resistant to earthquakes and/or upgrades to an older home’s heating, electrical and plumbing systems to reduce fire and water damage risk can also help lower your premiums.
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7 Ways to Save on Homeowners Insurance
