Ways to Reduce the Cost of Your Homeowner's Insurance Premium |
Posted: July 3, 2018 |
Homeowner's insurance is one of the costs associated with owning a home. The cost of having this type of insurance can be hundreds of dollars a month. Unfortunately, this is one cost of home ownership that does not go away. In some cases, your homeowner's insurance costs could increase over time. To keep your insurance costs under control, there are a few things you can do. Here are six ways you can lower you homeowner's insurance premium.
Increase Your Deductible The deductible is the amount of money you will have to pay before your insurance pays the claim. By increasing your deductible, you will decrease your premium costs. Most insurance companies recommend that you pay a $500 deductible. If you raise that deductible to $1,000, you can see a 25% decrease in your monthly premium. Use the Same Insurance Company for Multiple Policies If you have more than one insurance policy, it's beneficial to have these policies with the same insurance company. Some insurance companies will offer a 5 to 15% discount on your premium rate when you bundle your insurance. Not only will bundling save you money, it will keep you from having to remember to make multiple insurance payments. Don't forget to do your research. If it's actually cheaper to have separate insurance policies, maintain your coverage with the different companies. Only Purchase the Coverage You Need Look through your insurance policy and remove any unnecessary coverage. Don't pay for earthquake coverage if you live in a place where there are no earthquakes. Your premium costs will increase with the amount of coverage you need. Now, don't let the need to save money leave you without enough coverage. Take an assessment of your home and determine what you need to covered by your policy. Not having adequate coverage will force you to spend a lot more money repairing any damage that occurs to your home. Compare Coverage Rates Don't accept the first insurance quote you receive, compare the prices offered by other companies. Get a quote from three companies to ensure that you are getting the best rates. If you have a homeowner's insurance policy ask if you can receive a discount. Some companies will offer their customers a longevity discount. These discounts can range from a 5% to 10% reduction in premium costs. Longevity discounts are generally offered to customers who have used the same company for a couple of years. Improve Your Home Security Some insurance companies will give you a discount for installing dead-bolt locks, smoke detectors, or burglar alarms. You may be able to save up to 20% off your premium if you install a sprinkler system and burglar alarm that instantly notifies the police. Alarms system aren't cheap, so compare alarm companies to find out which one offers what you need at the best prices. If you are someone who doesn't mine installing your own security system, you may want to consider a DIY system. A DIY home security system tends to cost less than the other systems and can offers the same security features. Avoid Risks that Insurers Shun There are some risks that insurers are reluctant to insure or won't insure. Having any of these risks will cause an increase in your monthly premium. Having certain breeds of dogs as pets can limit or cause a cancellation of your policy. Having a home with a trampoline or pool can also increase your coverage costs. Thoroughly read your policy to find out what items are excluded from coverage. If you have any of these items, you may want to consider purchasing additional coverage. Homeowner's insurance is a must for every homeowner. While this is an added expense that homeowners have to pay, there are ways to save money. Considering some of the previously mentioned tips can save up at most 25% on your bill.
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