Save Money on Your Homeowners Insurance Without Sacrificing Coverage
Your home is your most valuable asset, so you want to be certain your homeowners’ insurance provides you with adequate coverage in an emergency. With so many things that can go wrong with your prized possession, you don’t want to scrimp on your insurance, but you also want to ensure that you get the best rates possible. Here are seven ways you can save money on your homeowners’ insurance while protecting your home.
1. Compare rates
Ask your insurance agent to compare your rates with two or three different companies annually; however, be careful not to consider price alone. Remember, securing a policy that has equal or better coverage is the goal. Consider your budget, cost of premiums vs. deductibles and the amount of coverage you get for the price when shopping around. Don’t be too quick to jump ship on price alone.
2. Insure your house for the cost to replace it
When purchasing homeowners insurance, make sure you only pay for the cost to repair or replace the house. Your premiums are not based on the market value of the home, which includes the purchase price and cost of the land. Ask your insurance agent or an appraiser to calculate the replacement cost of your home.
3. Increase your deductible
The majority of homeowners have a $500 deductible on their homeowners’ insurance. According to the Insurance Information Institute, you can save about 25 percent by simply doubling that amount. Just be sure you have the money available should you need it.
4. Make upgrades
Tell your insurers if you’ve added a new HVAC system, hot water heater, or electrical system. New systems are less likely to break down which means less risk for your insurer. The money you save on your premiums will help offset the cost of the upgrades.
5. Ask about discounts
You may be eligible for a number of discounts which will enable you to save up to 20 percent on your homeowners’ insurance. If you’re retired, live in a gated community or close to a firehouse, or haven’t filed a claim in 10 years, you may be entitled to a discount. Adding deadbolt locks or a security system, especially one that is monitored, can also lower your premiums.
6. Watch your credit score
A good credit score can help you save money on your homeowners’ insurance. Check your credit score regularly, pay your bills on time, keep credit card balances low, and avoid having too many credit accounts.
7. Quit smoking
Some insurers will lower premiums if the members of the household are nonsmokers. If you’ve been thinking about quitting, this may be the incentive you need.
Following these seven tips can result in significant savings. Talk to your agent about ways you can lower your premiums. Pay exactly what you need to pay for your homeowners’ insurance and not a penny more.