It’s amazing how quite a few people don’t really bother to get multiple home insurance quotes in order to find the best rates. In fact, many don’t really bother all that much with home insurance.
However, insurance is crucial because your home is most likely the most valuable possession you’ll ever own. Your home insurance policy insurance should cover the value of your home, and your belongings as well.
With a little bit of effort it’s possible to reduce the cost of your home insurance. Here are some ways that can help:
Go Online and Check Out Several Options
The Internet really makes it much easier to shop around for the best deals for home insurance. Just make sure that you don’t hurriedly get the lowest offer you receive. You need to do some research on the insurance company, and you should make sure that the details of the policy are suited to your situation.
One excellent online source is the website of the National Association of Insurance Commissioners. They can provide additional info on the insurance companies you’re contemplating.
Bundle Your Policies
You should ignore your current insurance company, especially if they offer different types of insurance. You may enjoy significant discounts if you get your car insurance from the same insurer as well.
So if you already have auto insurance, get a quote from your insurer for home insurance. Use this as a baseline when you consider other quotes from other insurance companies.
Increase Your Deductible
The deductible is the amount you pay out of pocket before the home insurance kicks in. The higher this amount is, the lower you pay in monthly premiums. Raising your deductible from $500 to $1000 can lead to a reduction of 215% on your premiums. If you’re concerned about not being able to cover the deductible amount, you may want to make sure you have an emergency fund that can cover the expense.
Keep in mind that making multiple claims against your home insurance will invariably lead to higher premiums. So a higher deductible really makes sense, because you shouldn’t bother your insurer when the damage to your home or the loss of certain possessions is minor. The general rule of insurance is to insure against a catastrophe, and not against inconveniences.
Determine What Kind of Coverage You Really Need
It’s unfortunate that in many cases, homeowners don’t get enough coverage for their particular situation. This isn’t the time to cut corners. Remember: your home is your most valuable possession!
However, you do have to guard against over-insuring your house. It’s not really required for you to insure your home for the amount you paid for it. That’s because when you bought the house the price you paid also includes the price of the land.
Instead, you should aim to get enough insurance coverage to make sure that the cost of rebuilding your home is covered, just in case it burns down to the ground. You should also factor in the value of your possessions. Make an inventory of your possessions with photos, and save the data online.
Check for Available Discounts
Each insurance company has their own sets of offered discounts. You may get certain price breaks for the following:
You’re older than a particular age.
You don’t file a claim for a certain number of years.
No one in your house smokes, and you don’t let guests smoke either.
You have a smoke detector system and a sprinkler system.
Discuss the matter with your insurer, as they may have a list of discounts that can apply in your case. They may also specify the types of security and fire alarm systems that warrant a discount.