Top Tips For Homeowners That Want To Save Money

30 Jul
Home Insurance Savings Tips

Review several home insurance tips that can put money back in your pocket while keeping your biggest asset safe.

You have invested a lot of time and energy to make your house into your home so protecting it should be a top priority.

Homeowner’s insurance can be expensive but not carrying the proper coverage levels can be devastating if you experience a catastrophic event. Saving money on your insurance premiums does not have to be difficult, the following tips can put money back in your pocket while keeping your biggest asset safe.

Shop Around – This is the number one way to save money on your homeowner’s insurance. While it will take some time, shopping around can result in big savings.  Insurers rate risk differently so quotes can vary dramatically, getting as many quotes as possible will ensure you have the best coverage at the best price.

Ask friends, family, and your social network for recommendations. Request quotes online and from your local agents. It’s important to make sure you are comparing apples to apples in regards to coverage levels and deductibles.

Raise the Deductible – The policy deductible is the amount you need to pay before your insurance kicks in to cover the damage. A higher deductible will result in a lower premium. Industry experts recommend carrying a minimum $500 deductible. If you can afford it, raising it to $1,000 can result in savings of up to 25 percent. Be sure you can afford the higher deductible, you never know when disaster or Mother Nature will strike.

It’s important to remember that if you live in an area that is prone to disasters you may have more than one deductible. East coast residents often have a separate deductible for wind damage while Californians may have an earthquake deductible. Check your policy for details.

Bundle Up – Most insurers offer a multi-policy discount so insuring your car and home with the same company will result in a substantial discount. The discount can range up to 15 percent but make sure that the bundled price is actually lower than buying the policies separately.

Don’t Over Insure – Remember that the value of the land your house sits on makes up a large proportion of the appraised value. When buying homeowners insurance you want to cover the cost to rebuild the house and replace your contents, not cover the appraised value of the home. Over insuring can run up your costs significantly.

Secure Your House – Installing a security system, hard wiring smoke detectors and putting dead bolts on the door can result in a discount of around five percent. If you are really ambitious, put in a sprinkler system which can drop your rates up to 20 percent. These systems are expensive so check with your insurer about the discount before having it installed.

Ask for Every Discount – Insurers offer tons of discounts so make sure you are taking advantage of all of them. Talk to your agent and make sure you are getting every discount you are qualified to receive. As an example, people who are retired usually qualify for a discount because they spend a lot of time at home and have more time to maintain their house.

Keep Your Credit Score High – Insurers rely heavily on your credit score when determining rates. A poor credit score will absolutely result in a higher homeowner premium. Protect your credit rating by paying bills on time and keeping credit balances low. Review your credit report yearly and correct any incorrect information.

Ask for an Explanation – Keep an eye on your premium and if it goes up more than five percent in a year, request an explanation. If there is no justifiable reason for the increase, start shopping around for a new insurer.

Remember, there are only a few sites like that can offer multiple quotes (up to 12) with only one request. Plus, all our agents have over 20+ years of experience and are based in your state. Which means you don’t have to shop all over the internet to find quotes that you can compare with advice you can trust.

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