The main reason to purchase homeowner's insurance is so that your house, belongings, and property will be covered financially in case of loss. The policy also provides liability insurance. There are many options available offering different amounts of coverage. This article will offer you ten different ways to save money on your homeowner's insurance.
Step 1
Ask for recommendations. Consider all possibilities if you want to get the best deal when you shop. Ask around from family and friends, but don't expect the rates for your home insurance in Seattle to be the same as what your Aunt Sallie pays for hers in St. Louis. Look online to compare homeowner insurance quotes. Ask consumers agencies about a company's reputation. Good information can lead you to the right choice.
Step 2
Have higher deductibles. The higher your deductible, the lower your premiums will be. This is a great way to save some money, but you need to be smart about it! Don't choose a deductible that is more than you could afford to outlay. If you have a claim and cannot come up with your deductible, your insurance will not kick in.
Step 3
Combine policies. If at all possible purchase your home, auto, health care, or any other policies you require all from the same company. Often, multiple policies can earn you up to 25% discount on all your policies.
Step 4
Add safety enhancements. You will get more discounts if you take steps to make your home disaster-proof. Your insurance agent can suggest the most beneficial options. Storm shutters, better roofing, and measures to protect against earthquake damage are all probably worth considering. You will save money in the long run.
Step 5
Install home security. You can save anywhere from 5% to 20% a year if you install home security equipment. Smoke detectors, dead bolts, sprinkler systems, and burglar alarms are all considered home security and each earns you a discount.
Step 6
Maintain good credit. Believe it or not, your credit history affects your insurance costs. That's because the industry believes if you have good credit you are more responsible and therefore less likely to have a claim. So make sure your credit stays healthy.
Step 7
Be consistent. Stick with the same insurance company. Staying with the same company will usually earn you a discount on your premiums. Most companies will give you a 5% discount after 3 years and a 10% discount after 6 years.
Step 8
Check your limits. Be sure to pay close attention to your coverage. Don't pay for coverage you don't need and do be sure to have adequate coverage where you need it. That fur coat you insured for $10,000 ten years ago, do you still own it? That beautiful diamond ring that cost $5,000, do you have coverage on it?
Step 9
Know before you buy. When in the market for a home, watch for those little things that can make the difference in your policy premiums. Fire hydrants within so many feet can reduce your premiums. A volunteer fire department can increase your premiums. Some types of heating can increase your premiums. Some districts can increase your premiums.
Step 10
Seek affinity discounts. Many insurance companies offer a variety of discounts to certain affinity groups so be sure to ask. For example, seniors often earn a discount of 10% or more. Membership in some associations will also earn you a discount.
