Are there ways to save money on home insurance?

01 Feb
Are there ways to save money on home insurance?


Attaining the best rate for your home insurance policy is the way to save money in the long run. There are a few tips that you can employ to ensure that you obtain the best possible rate for your home insurance. Choose the company and policy type very carefully because this can make a monumental difference pertaining to the amount that you will have to dish out, certainly in the long run.

  • Reviewing Policies: It is important to ensure that you aren't over insured or under insured. To do this, you have to keep a tab on your policy at least on an annual basis. In general, a home insurance policy should be enough to bear the replacement costs of the contents of your home as well as the home itself. There is no need to be insured for more than the amount required.
  • Policy Shopping: Acquiring the best rate will involve knowing what other companies have to offer, accumulate some quotes from a variety of companies so you can pick the one that has the best value for your money and is the most befitting to you. Companies such as StateFarm, 21st Century, Allstate, Universal Property and Casualty, Liberty Mutual, ASI and Farmers are some of the most preferred companies when shopping for home insurance rates online.
  • Getting Home and Auto Discounts: When you invest in policies for your home as well as your automobiles with the same company, you will, in most cases, be able to ask for a discount. You can take complete advantage of the home/auto insurance discounts by choosing one insurance company for both services. Generally, you will be able to attain a discount of about 10 percent or more on both policies. This is one of the best homeowners insurance money saving tips.
  • Raising Deductibles: Paying a high deductible will mean that you will be able to pay a lower premium. In the long run, this will save you some serious money. A deductible is the amount that the homeowner has to pay for a claim before the insurance company begins paying. Of course, it is important to arrive at a figure that you are most comfortable paying but it makes financial sense to keep your deductible high.
  • Home Upgrades: Adding safety and security upgrades such as a new roof, storm shutters, a strong deck, energy efficient windows, and so on will make your home safer, worth more, and more appealing and therefore, less likely to need a claim in case a disaster strikes. Home insurance companies show their appreciation for such additions to homes by rewarding those owners. Your insurance agent will be able to help you in ways of protecting your home which therefore means money saved on your part.
  • Home Security System Discounts: A working home security system will be a terrific help in the prevention of burglaries. For a home insurance company, a home security system means less chances of a claim and you may be able to arrive at a discount for having one installed.
  • Ask: Most home insurance companies offer a variety of discounts to homeowners and often people don't obtain these discounts because they don't ask for them. For example, non-smokers may be offered a lower home insurance rate by some companies. Ask your insurance agent about any applicable discounts.