If you own your home, you’re undoubtedly aware of the cost of upkeep and expenses like insurance. These expenses cannot be cut entirely, but the amount you spend on them can be lowered. Following are a few tips on how to save on home insurance.
Search for Low Rates
The price of insuring your home varies a lot, depending on the amount of coverage you get and who your carrier is. By doing a little research, you should be able to find a company that can give you adequate coverage at reasonable rates. The Internet is a tremendous asset for doing research, so you should begin your quest there. By comparing rates from several insurance companies, you will notice varying rates for similar coverage. Take note of the quotes and then begin calling local insurance companies to determine if they can offer you comparable coverage for anywhere near the same rates. Because the insurance industry is extremely competitive, they should be willing to meet or beat the online quotes.
Discounts May Be Available
If your local insurance companies can come anywhere near the prices you were quoted while online, you may want to find out if they will also offer you any discounts. Frequently there are a variety of price cuts available, but you may have to ask what the qualifications are to receive them. Most insurance agencies will offer a discount if you combine your home, health, life, and auto insurance into one package. This is called bundling within the insurance industry, and in most cases you will be able to save quite a bit of money. If your other types of insurance are through a different carrier, you may want to consider switching all your policies to one insurance company, providing they can save you enough money to make it worth doing so.
Security Discounts
Most insurance companies will offer other types of discounts, such as a reduction in costs if you install certain safety features. Putting in new deadbolt locks on doors and windows will improve your home’s resistance to a break-in and also reduce your insurance costs. Other safety features that will save money are installing storm windows and shutters to reduce the chance of damage during inclement weather. Having a new roof installed, especially if it is fire-retardant, will also lower your insurance costs. If you have smoke detectors installed, or a fire alarm that rings into a manned fire station, your insurance costs will go down. Adding motion detectors will reduce your costs, and your premiums will go down significantly if you install a burglar alarm, especially if it rings into a home security business or police station that is manned around the clock.
Raise Your Deductible
A standard practice within the insurance industry is to reduce your premiums if you raise your deductible. Having higher deductibles on your homeowner’s policy may mean more out-of-pocket expense if something happens, but if you don’t need to file a claim you can save a great deal of money by doing so. If you choose to raise your deductibles, you should protect yourself by opening a savings account that is designated for emergency use only. If you have the will power to put the equivalent amount of money that you save by carrying a high deductible into the savings account, and not touch it unless you have to file a claim, you’ll not only be saving money on insurance premiums, but collecting interest in the bargain.
Pay On Time
One way to save a bit of cash is to make sure you pay your monthly premiums in full and on time. Insurance companies like dealing with customers that they can count on, and if you pay regularly they know they can trust you, and may reward you with a reduction in rates. You can also save a few dollars if you pay annually instead of monthly, because there is usually a handling fee associated with billing, so paying only once a year will save some money.
Find a Company You Like, and Stick with Them
Most insurance companies will reward loyalty. If you can find a carrier that you like, it would be a good idea to stick with them throughout the years. The longer you remain a customer with one company the more discounts you can expect to receive, and you will more than likely develop a great deal of confidence in your carrier. Having that peace of mind is what home insurance is all about.
Guest post from Casey Lynch. Casey writes about home insurance for HomeInsurance.org.