If you are a homeowner, you may already have home insurance. After all, homeowner's insurance is a necessity. Nevertheless, it can be expensive. Here are five ways to help you reduce your home insurance premiums:
Increase Your Deductible
Your home insurance deductible can affect the overall cost of your policy. If your deductible, which is the amount of money you pay out-of-pocket before your insurer pays, is too low, your premium costs can be higher than they should be. Consider increasing your deductible and putting aside money to cover the higher out-of-pocket expense. You will save money in the long run. Nevertheless, it is important to keep enough money on hand to cover the higher deductible in case of a claim.
Assign Your Home's Value Properly
You only need insurance to cover the replacement value of your home. For the purpose of your home insurance, define replacement value as "the cost to rebuild." If your home rests on prime land that is overly expensive, don't include the value of the land in your replacement value. After all, you will not file a claim for lost soil.
Bundle Your Policies
If you are pleased with your home insurance provider, purchase your automotive coverage from the same insurer. Discounts for bundling policies can range from 3 to 22 percent when you bundle your automotive and home insurance.
Make Your Home Safer
You may be able to reduce insurance costs by making your home safer. The installation of disaster-resistant improvements, such as storm doors, can lower premiums. In addition, updating your HVAC system or your plumbing could lower premium costs by lessening the likelihood of a claim. Even the addition of a security system or a smoke detector can lower your policy rates. Consult your agent to verify the premium-reducing additions that are recognized by your insurer.
Stick With the Same Insurance Company
Your insurance company may offer loyalty discounts for long-time customers. The discounts may increase based on your longevity with the company. For instance, if you remain with the same insurer over 6 years, your discount may be more than that of a 3-year customer.
The price of your home insurance policy is not set in stone. Premiums can be reduced by taking advantage of cost-saving options. If you would like to lower the cost of your home insurance, speak with your insurance agent today. He or she will be able to offer viable suggestions to lower your rates.
Share29 June 2015
