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Home Insurance - 5 Tips That Will Lower Costs
Home insurance rates vary by hundreds of dollars from company to company. Fortunately comparing multiple homeowners quotes is as easy and non-committing as finding car insurance. As you review your home insurance and compare quotes, use the five following tips to take advantage of your potential savings.
1. Raise Your Home Insurance Deductible: Save up to 25%
The lowest hanging fruit for home insurance savings may be to increase your deductible. According to the Insurance Information Institute (III), if you can afford to raise your deductible to $1,000 from $500, you may save as much as 25% on your annual premium. Remember, home insurance is not intended for small fix-it claims, therefore, the benefits of a lower deductible can be quickly dissolved by the higher rates that you will experience after making such claims. Since homeowners insurance is intended for major peril, consider higher deductibles and collect the savings in the cost of your premium.
2. Multi-line Policy Insurance Discounts: Save up to 15%
Purchasing your home insurance and your car insurance from the same insurance carrier could save you up to 15% on both premiums.
3. Additional Security and Safety: Save up to 20%
Have you added new security devices to your home in the last year; perhaps a deadbolt lock, window locks, or even an alarm system? Insurance companies highly value the protection afforded by fire sprinkler systems, burglar alarms, and fire alarms -- especially those connected to monitoring agencies such as your local police and fire department. Accordingly, some carriers reduce premiums by as much as 20% if you install some of these features.
4. Home Insurance Discounts for Improvements
A new home's electrical, heating, and plumbing systems, and overall structure for that matter, are likely to be in better condition than those of an older home. Because of this, insurance rates on newer homes are generally lower as the risk for a potential claim is mitigated. If you have made any home improvement in the past year, you should see if a new policy will reward you with policy discounts.
5. Eliminate Coverage You Don't Need: Analyze Your Homeowners Limits
Ideally, you want your policy to cover any major purchases or additions to your home, but you should not spend money for coverage you don't need. You may have jewelry, appliances, electronics, and other valuable possessions that depreciate over time; therefore, it is in your financial best interest to compare the limits of your homeowners policy to the actual value of your possessions at least once every year.
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