Ways to save money on homeowners insurance
Buying a home is the most important financial investment most people will make in their lifetime. Homeowners realize the importance of protecting their investment by making sure that they carry comprehensive insurance. Even though premiums may be high, there are ways to reduce the cost.
Policies with the lowest premiums require the highest deductible. Premiums are higher when the deductible is lower, but that means less out-of-pocket expense when filing a claim. Most people opt for the higher deductible to keep their premiums lower. They are taking a risk that they will be able to afford to pay the deductible at the time the damage occurs.
Evaluate Insurance Needs
There are ways to eliminate costly, unnecessary coverage. An excellent way to cut premium costs is to review all insurance policies periodically. Covering most outbuildings is usually not necessary and can probably be eliminated. Many people do not realize that the homeowner’s policy includes the land beneath the home. There is no reason for it to be included. Conduct an inventory of household possessions and estimate how much it would take to replace them. Know the value of these items and reduce the amount accordingly. Review the current list and eliminate unnecessary ones such as a computer being sold.
Consider Installing Upgrades
Most insurance companies will reduce premiums by at least 10 percent for installed, monitored security systems. Insurance companies look favorably on the addition of deadbolt locks on doors and new locks on all windows. They calculate premium rates based on the likelihood of burglaries, storms, fires, and floods. A homeowner can save money on insurance by upgrading outdated plumbing or electrical systems. Replacing a worn roof with one that is more resistant to wind and weather damage can result in a much-lowered premium.
Shop Around for the Best Deals
Homeowner policy prices do vary from company to company. It pays to shop around for the ones that offer the best discounts for full coverage policies. Some offer incentives for policyholders with a claim-free history. Insurance companies carefully review credit scores before accepting a client. A person with a credit score below 630 is considered high risk and can expect to pay higher rates than someone with a higher score does.
It is possible to save money on ever-increasing homeowner’s insurance rates. Take the time to review the coverage and tweak it when necessary. It is wise to make sure that making any changes to the policy will not result in a higher deductible. Ask about incentives or discounts periodically. This simple gesture could lead to saving money.