Home insurance protects your most valued possessions, but that doesn’t mean that it should cost more than it has to. Following these helpful tips, and getting multiple home insurance quotes will help you reduce your home insurance costs – just watch the savings add up!
1. Lump them together.
By getting all of your insurance needs covered by the same provider you can earn an extra discount on every policy, including your home insurance. This way, you’ll take advantage of even higher savings, and keep your contact list short when you have an insurance concern or claim.
2. Increase your deductible.
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.
3. Don’t over-insure.
Your insurance will only cover your loss – and many homeowners make the mistake of including the price of the land that the home is built on in their replacement cost. You will never be able to claim on this – as the land will remain intact, regardless of what happens to the building. Your home value (for insurance purposes) should only ever be the value of the buildings on the property – leave the land value out of it and you’ll notice significantly lower premiums. Furthermore, if you don’t own any jewelry of note, then removing the coverage may decrease rates.
4. Claim less.
Your insurance is there to protect you when you have a loss, but a history of frivolous claims will increase your premiums. The size of your claim doesn’t register against your history, but the quantity of claims does. Make sure that you review your loss and assess whether it is worth a claim – you’ll likely be paying your deductible anyways, which in some cases, could cost more than the payout on the claim.
5. Increase safety measures.
Installing safety devices in your home isn’t just beneficial for protecting your family, it could save you on your insurance premiums. By installing a monitored alarm system, a sprinkler system (in your house, not your lawn!) or hard-wiring smoke and carbon monoxide detectors in, you could qualify for reduced home insurance premiums. Physical improvements like fortifying the roof from caving in or updating the circuitry may also help. Make sure you advise your insurance provider if you’re making these improvements – otherwise, you won’t see the discount on your policy.
6. Discounts and deals.
You may think that your insurance company will automatically provide you with any discounts you qualify for, but in most cases, they won’t. Your home insurance company may offer discounts for seniors, for homeowners who own their homes outright, or for home improvements that increase safety and security. Unless you ask, you won’t receive the discounts – so make sure you inquire.
7. Quit smoking.
Smoking only affects your health and your life insurance costs, right? Wrong. Many insurance companies recognize that home fires are often caused by careless smoking, and that homeowners who smoke are much more likely to experience fire loss in their homes..
8. Pay annually.
Premiums are often subject to financing or administration fees if you pay on a monthly basis – so if you can afford to pay for the year in advance, you’ll save on your premiums.
9. Compare rates.
By spending a few minutes to compare insurance quotes, homeowners often find that they can reduce their premiums. By taking the time to shop for home insurance from a few different sources, and compare the options available, finding the best coverage for the best rate is much simpler. If you don’t want to visit or call insurance companies, you’ll find that there are many options available for getting quotes online, so you can shop at your convenience.
10. Buy online.
Insurance companies reduce their overall costs when homeowners buy their policies online, and therefore there’s often a discounted rate available for online purchasers. By purchasing your insurance online you may save a little extra on your premium, depending on which type of provider you choose.