10 Ways to Lower Your Home owners Insurance Cost
Did you know that the cost of your home owner’s insurance policy could vary by hundreds of dollars based on the choices you make on the carrier and the policy? With rising inflation rates, the premium rates of the policies are increasing every day. It, therefore, becomes important for you to know more about how to save costs. So let’s begin…
- Look Around, Shop for the “Right’ Policy – Shopping around takes time, but you will end up making substantial savings. Explore all your resources; check with your friends, look up the Yellow Pages, or check with your state insurance department. Check consumer guides, speak with insurance agents and companies and get quotes online. But just low price doesn’t mean much. Friendly and transparent claims process and quality service are critical.
- Raise Your Deductibles – As explained before, deductible is the amount of money you can pay towards damages even before your insurance carrier pays the claim. The higher your deductibles, the lower your premiums and more the savings:
- $500 and save up to 12% on your premiums
- $1,000 and save up to 24%
- $2,500 and save up to 30%
- $5,000 and save up to 37%.
- Choose the same insurer for your home and auto policies – Buying insurance for both car and home from the same company ensures that you are entitled to higher discounts.
- Opt for home insurance when buying a home – Considering purchase of a home? Think about the insurance costs involved. New homes are in prime condition than older home and this will help you get more discounts on your premiums.
- Also Read: What is home insurance? in 2022
- Insure your home, not the land – Do not include the value of the land on which your home is built when buying homeowners insurance. This is important because while your home and possessions are at the risk from disasters such as fire, theft, windstorms and other, the land your home sits on is not.
- Improve your home’s safety and security – Keep your home safe and secure using items such as deadbolts, burglar alarms, and others. These can earn you a discount of 5% depending on the carrier. A high-tech security system can bring you 15% to 20% discounts. For non-smokers the premiums are lower.
- Maintain a good credit score – A solid credit record may cut your insurance costs. Check your credit history on a regular basis and make sure all errors are corrected promptly ensuring an accurate record.
- Remain with the same insurer – Being loyal to one carrier for many years may help you receive special discounts that can vary from 5% -10% for a period of 3 to 6 years.
- Look around for discounts – Insurance companies offer several types of discounts, but these discounts are not the same nor of the same amount for all states. Insurance companies usually offer senior citizen discounts as retired people stay at home more and maintain their homes better.
Review your policy limits and value your possessions at least once a year – Each year you may want to add more possession under the policy coverage. But, you don’t have to spend on the coverage you don’t require.
Also Read: Saving money to Save Yourself 2022
Remember, that though you may want to lower your homeowners’ insurance premium, you also need to ascertain that you are fully covered.