Your monthly homeowner’s insurance policy premium can add a notable chunk of money to your house payment. No matter who you are or what your budget, every penny counts if you are conscious of your fiscal affairs. After all, who likes to throw money away on things that aren’t necessary? Did you know that your homeowner’s insurance policy could be costing you more than what you need, and that there are ways to lower the cost of that insurance without risking your home? Here are five tips for lowering your homeowner’s insurance cost:
Comparison shop. Just as with any other type of insurance, you can save a lot of money by shopping around with different providers before committing. That is because different providers offer different coverage, and use different factors to determine your premium.
Safeguard your home. You can drastically lower your homeowner’s insurance premium by making sure your home has the best and most safety features possible. For example, by placing new fire/smoke detectors around the house, dead-bolting the doors, and installing an alarm, you can decrease your insurance obligation by as much as fifteen or twenty percent
Raise your deductible. The deductible is the amount of money you agree to come out of pocket when you make an insurance claim, before the insurance company must come out of pocket. For example, you may have to pay a deductible of $2000 for smoke damage to your home, and the insurance company would pay the rest. By raising the deductible, you offset the insurance company’s risk, and your premium will be lower to reflect that.
One-stop shopping. Most insurance companies offer discounts for having multiple policies with them. Therefore, it is in your best interest to look into placing your health insurance, life insurance, auto insurance, and homeowner’s insurance policies all with the same provider.
Home versus land insurance. Don’t make the mistake of purchasing insurance for the land your home is on. Remember that your home is “property,” which can be damaged and destroyed, but your land will most likely stay the same regardless of the circumstances covered by a homeowner’s insurance policy. When you are getting homeowner’s insurance quotes, use the rebuilding cost of the property itself, not what you paid for the property (which includes the land).
As you can see, there are very simple things you can do to make sure you are paying as little as possible for your necessary homeowner’s insurance. If you take each of these examples into consideration, you could dramatically reduce your homeowner’s insurance obligation, without putting any unnecessary risk on your property’s security.
About the Author: Donald Laumbach is an insurance specialist who enjoys helping homeowners keep their costs low. He also works with parents to make sure they are saving properly for college expenses, looking for grants for college, and ensuring the financial futures of their children.