Home Insurance – 4 Ways to Save on Your Policy
by Mashum Mollah Insurance Published on: 27 May 2017 Last Updated on: 18 October 2024
There are a few life decisions that do not require much debate in your mind. Afterlife and car insurance, your home’s insurance should be the biggest no-brainer. When nature rips off your roof, your dog takes to biting strangers in the street, or if someone decides to break into your home for that valuable collection of jewelry, your basic home insurance should cover you.
But like any other major purchase you make around your home, it is advisable that you look around for the best deal. This way you can also compare the different home insurance options on the market. Luckily, there are various ways you can save on your insurance policy; print out this list and use it as you shop for a local agent or online.
Home Insurance – 4 Ways to Save on Your Policy:
1. Go Shopping:
Shopping will take you some time, but it will save you a good amount of money. Talk to your friends, contact your nearest state insurance department or check the Yellow Pages. The National Association of Insurance Commissioners website also contains information that will help you choose that insurer in your state.
Just as businesses use reviews to search for the best credit card offers for small businesses, comparing insurance companies and agents on consumer guides gives you a better idea of price ranges and in identifying the lowest priced. However, price should not be your only method of getting the lowest premiums. Your insurer should offer you a fair price and quality service in case you need to file a claim.
Check on the financial stability of a company you are considering and consult consumer magazines for more information on their performance. MyChoice Insurance will help you decide and compare a selection of home or even auto insurance rates from top providers. Once you have narrowed down your list to at least three home insurers, contact them for price quotes.
2. Raise Your Deductible:
The average deductible for home insurance is around $952 a year, but raising this to $2,000 is going to cut your premiums by between 8 to 10 percent. Having a higher deductible is a gamble since you will need to pay extra money upfront in case of a claim. However, it does pay off when you do not have a claim to file. Choose a maximum amount of deductible that you can afford to pay in case of loss; if you can afford to pay more than $2,000, you will be saving even more.
Read also: Top 10 Home Loan Tips
3. Bundle Your Insurance Policies:
If you have both home and car insurance, you are better off having them handled by one company. Most insurance companies have systems in place that make the processing and billing for one person easier rather than for multiple people with a single policy each that allows them to offer you a significant amount of savings for bundling your auto and home insurance. While the savings may vary from one company to another, bundling insurance policies can save you up to 15 percent; not mentioning the added advantage of dealing with one agent for your insurance needs.
4. Make Your Home Disaster Resistant:
Find out from the insurance company or agent what you need to do to make your home even more resistant to natural disasters like windstorms. You can save a substantial amount in premiums if you reinforce your roof, add storm shutters or purchase a stronger roofing material. If you live in an older house, you can have it retrofitted to make it stronger against earthquakes; plus, consider installing modern electrical, plumbing, and heating systems to reduce the risk of water and fire damage.
If you have any concerns about insurance, make sure you ask the insurance company’s agent while shopping for a policy. For example, if you are running a business out of your home, be sure to discuss what its implications are likely going to be on your insurance premiums. While you want to lower the cost of your home insurance, you also need to ensure that it covers everything you need.
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