For many people, the cost of their home insurance premiums may seem to grow year after year. This equates to an ever tightening strain on many homeowners' annual budgets, and can be a real difficulty. However, it may actually possible to reduce the cost of your home insurance premiums considerably, if you know how to go about it. These tips will help you try to reduce your rates!
1. Increase your homeowner's deductibles
Your homeowner's deductible is the amount in dollars, of risk that you are prepared to accept and pay in the event that you need to make a claim on your policy, BEFORE your home insurance provider will pay out on any claims. If you're finding that the cost of your monthly premiums is increasing annually and you're looking to save, raising the dollar value of your deductible is an easy way to reduce the risk to your insurance provider, and therefore reduce your premiums. For example, if your deductible is currently $200, raising it to $500, or even $1,000 can make a really big difference on your premiums - saving you as much as 25% on the cost of your annual or monthly premiums.
Many home insurance providers now offer deductibles that equate to just 1% of your home's insured value ($2000 deductible on a $200,000 home). While it may seem like quite a large amount to have to pay if you need to make a claim, the reduction on your premiums may be worthwhile for you. The important thing is to make sure you have the deductible cost to pay out should you need to make a claim! Home insurance is a way of sharing the risks (for a small fee) of owning a home that are largely beyond your control with others. Your deductible is an indication of how much of that risk you're willing to assume.
2. Combine home and auto insurance
Consider buying your home and auto insurance from the same provider if you can find one that offers you the right deal on both. In looking for cheap home insurance quotes you'll find that many insurance providers are happy to offer you discounts of around 10-15% should you purchase at least two types of insurance coverage from their company. However, you still need to shop around and make sure that the combined cost is lower that what it would be if you bought to separate policies from different companies.
3. Ask for a discount
There are many discounts available to you if you bother to ask for them. For instance, you can claim a discount on your premiums if you have smoke alarms installed, or if you have additional burglary and fire detection systems in your home. Also, things such as fire extinguishers and deadbolts can earn you a discount. Some insurance providers offer discounts to seniors or people over a certain age as well.
4. Don't purchase what you will never need
It is very foolish to pay for coverage on risks and perils that are never going to affect you, such as earthquake or volcano coverage in an area where this kind of natural disaster could never occur. Alternatively, if you don't possess any jewelry of note, you may want to exclude this from your policy.
5. Make your home more damage resistant
It's a good idea to ask your home insurance provider about the measures you can take to protect your home, thus making it cheaper to insure. For example, certain renovations may reduce the risk of your roof being blown away during a gale or heavy storm, and your insurance provider may reward you for that. Also, updating certain things, such as the old heating systems or outdated electrical wiring, which can reduce the risk of fire in your home and increase your safety, can also reduce your insurance premiums.
6. Keep up to date
Every year, just before you come to renew your home insurance policy it is a good idea to dig the old one out and have a good read through it. Check all the details and if you find anything that is out of date, call your provider and tell them about the changes in your circumstances. This could lead to a reduction in your overall premiums costs, and will ultimately ensure that you're coverage is valid and up to date.
7. Avoid Additional Risks
Some home insurance providers are put off by certain kinds of risk. Owning certain kinds of dangerous pets (certain breeds of dog, domesticated wild animals, poisonous or dangers reptiles, etc) can actually increase your insurance costs. Home improvements such as swimming pools, hot tubs and trampolines can also increase your costs. You need to make sure that you read and understand the small print in the "Conditions" section of your policy in order to make yourself aware of any exclusions and high risk designations which will ultimately raise your insurance premiums.
Ultimately, you may find that you can reduce your home insurance premiums by following a few simple tips and shopping to find cheaper insurance rates. Contact your broker and check online to see what home insurance rates might be available to you that could save you on your premiums.