With the rise of more and more natural disasters – not to mention economic uncertainty – the cost of insuring homes is skyrocketing. While most insurance companies are reaping the benefits, homeowners are left trying to figure out how to pay for it all. On top of your mortgage, taxes and all the other costs that go along with homeownership, the last thing in the world you want to be gouged for is homeowner insurance. Luckily, there are a number of resourceful ways to save money and reduce costs on your insurance rates. You may have to make a few sacrifices here and there – and maybe a few compromises – but nothing that will affect your quality of life. Here are five homeowner insurance cost reduction tips.
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Shop around. When it comes down to it, shopping around can be advantageous, because it can allow you to leverage one quote against another. For instance, if you get a low rate from one insurance company, you may be able to get an even lower rate from another insurance company based on the initial quote. Most insurance companies want your business and they will sometimes bend over backwards just to get it, which can work out in your favor.
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Go with an insurance brokerage agency. If you really want to cut costs, you want to go to the professionals. Just like you would visit a website to search for the best deals on flights, you can also find a similar service for home insurance. For instance, Clark Insurance Group is a private insurance agency that will contact over 30 insurance companies – just to find the best deal for you. When it comes to saving money, this can be one of the most convenient routes to cutting costs on home insurance.
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Inquire about discounts. Another way to cut costs is to simply be direct. It can’t hurt to simply ask for a discount. Some home insurance companies have special deals that they may not advertise, but offer when you ask. This is a common practice in the insurance industry. All you have to do ask the representative if there are any current deals. By doing this, you could save a significant amount of money in the long run – all because you asked.
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Group your auto insurance with your home insurance. When it comes down to it, you can save up to 25% on your home insurance if you find a company that can group both your home and car insurance policies. There are many companies that amalgamate insurance policies, so it may be smart to find one if you want to cut costs on your monthly insurance expenses.
- Ask for a loyalty discount. If you are currently locked in with an insurance company, but you have been with that company for ten or more years, you may be eligible for a loyalty discount. Many insurance companies reward long-term customers with these discounts, which could contribute to a huge cut in the cost of your home insurance policy. In the instance of home insurance, sometime loyalty really can pay off.