If your home owners insurance is on the rise, here are some tricks to get things under control so that you can save money on home owners insurance.
1. Check your coverage limits.
If you are living in an area with high risk area, you should consider what your coverage limit is. The higher your limits, the more you will be covered for, but the higher your premium will be.
Make sure that your limits are set correctly and that your home value is accurate and not inflated. Keep in mind the current cost of homes however as most values have risen.
As far as home contents go, also be careful that you are not over insured. A detailed walk around your home will allow you to list your valuables and put a somewhat accurate valuation on them.
With home owners insurance, you want to be covered, but you do not want to wastefully over insure yourself.
2. Get an online quote.
Get an online quote and compare it to your current home insurance policy.
You can get an online quote in just a few minutes by entering your home address and a few pertinent details into an online form.
You will then generally receive multiple quotes from different companies that offer home insurance policies in your area. When getting your quotes, it is important to compare apples to apples. This means getting your current policy and making sure that the quote is for like coverage with the same deductible.
3. Review your deductibles.
And speaking of deductibles, let’s talk about them. A deductible is, in a nutshell, the amount of money you have to pay before your insurance company starts paying for anything. If you have a 2500 dollar deductible and receive 10,000 dollars in damage to your home, you will pay the first 2500 dollars in damage. Your insurance company would then kick in the remaining 7500 dollars.
By changing the amount of your deductible, you can drastically reduce the cost of your home owners insurance. Going from 1000 dollars to 2500 dollars, for example, might reduce our annual premium by 20 percent or something similar. Do be careful with your deductibles however. You want to make sure that you are able to come up with the money in the event of an insurance claim.
4. Compare prices with other companies.
There are a lot of insurance companies out there and many of them are looking to attract new clients. To do this, they may offer introductory discounts that can drastically cut your first year premium.
One thing to keep in mind, however, is that these discounts are usually for the first year, in order to get your initial business. After the first year, they will raise your premium, counting on the fact that you will not want to bother switching to another insurer.
If you go this route to get savings, be prepared to do it again next year.
5. Find out if you can bundle policies.
By bundling policies together, you can get a discount on your insurance premiums. It is very much worth it to compare prices and see if you can save money by bundling policies together.
Generally speaking, the most common policy that is bundled with home owners insurance is car insurance. This is a lucrative insurance policy and one that insurers are eager to get. Other policies may give you a discount however, so if you have life insurance or even pet insurance, give it a try.
6. Ask about discounts and deals.
Insurance companies often have deals that are not fully disclosed, so it pays to ask about them. This might be anything from a discount to veterans to reduced rates for first responders. Remember, it never hurts to ask.
Asking for discounts is particularly beneficial if you work with an independent agent. Unlike an employee at a big insurer, if they lose your business, they lose your money. This can prompt them to go the extra mile to get you savings and retain your business.
7. Make your home more insurable.
Homeowners can take simple precautions to make their home more insurable in order to reduce their premiums.
First and foremost, it’s important to make sure the roof is in good condition. Due to decades of roofing fraud cases, insurers are cracking down. Getting a new roof would certainly save you money on your insurance policy, but this could cost you anywhere from 6,000 dollars to 10,000 dollars. A more affordable option may be to simply have your roof inspected regularly and to make repairs as needed.
Another way to make your home less of a risk is with a monitored alarm system. A monitored system will not only protect your home from theft, but also fire. If you are not at home and a fire alarm goes off, the monitoring station could dispatch the local fire department. In a home without an alarm, there would be nobody to call the fire department until external signs of a fire were revealed to neighbors. By then, the home might e a total loss.
Other ways to reduce insurance risks include noting how far you are from a fire hydrant, avoiding risky add-ons like a swimming pool or not having an aggressive breed dog. There are a lot of little things like this that go into an insurance risk assessment.