Many factors determine home insurance rates, and they can significantly affect how much someone pays. Important factors include distance from fire departments and water sources, the area where the home is located, the condition of the home, and local crime statistics. The amount of coverage on the policy is an important consideration as well. While many factors cannot be changed, homeowners can take steps to get cheaper home insurance by making some changes to their homes or to their insurance coverage.
Tip 1: Smoke Detectors
While many municipalities require that smoke detectors be installed in new homes, older homes may not have them. However, their presence is crucial as a cheap but highly effective warning system. Installing good quality smoke detectors or replacing old ones can cut insurance costs.
Tip 2: Install a Security System
Security systems which alert police or emergency services can help homeowners get cheaper home insurance since they are a deterrent to crime. Before installing a security system, homeowners should check with their insurer to find out if the system qualifies for a discount.
Tip 3: Home Renovations
Improving the condition of a home by upgrading old heating systems, electrical wiring, and plumbing can reduce insurance costs. These improvements and renovations affect home insurance because they reduce the risk of fire and water damage to the home.
Tip 4: Reduce Liability Risks
Fixing hazards like old steps and broken railings or sidewalks can help homeowners get cheaper home insurance. These are important, money saving improvements because they reduce the risk of injury to visitors, which could potentially result in an insurance claim.
Tip 5: Pets
Pets like pit bull terriers and rottweilers can raise insurance rates since they are known to bite both other dogs and people. As a result, they can pose a liability risk, which increases insurance rates. Choosing a low risk pet can result in cheaper home insurance rates; owners should train their pets as well.
Tip 6: Disaster Proofing
Homeowners in areas prone to weather conditions like wind storms may be able to save money by installing a stronger roof or working shutters to the home. Most home policies don’t cover damage due to floods and earthquakes, so homeowners should ask about separate policies to cover damages caused by these acts of nature.
Tip 7: Don’t Insure Land
When insuring a home, homeowners should deduct the value of the land from the value of the home since the land won’t have to be rebuilt in the event of a disaster. The difference in the amount of the insurance policy can result in substantially lower premiums.
Tip 8: Multiple Policies
Most insurers offer discounts to customers who purchase more than one type of policy from their company. Since nearly all insurance providers offer many types of insurance, it is easy to bundle all property insurance policies with one company for the best discounts.
Tip 9: Raise Policy Deductibles
Raising the amount of the policy deductible can result in lower premiums, which saves money. The deductible is the amount of damage that the insured must pay for before making a claim. A policy with a $1000 deductible costs less than one with a $500 deductible.
Tip 10: Shop Around
By comparing the rates of different insurance companies consumers can find cheaper home insurance rates especially if they are new to the market. There are many ways to do this, and the internet makes it especially easy, as there are many sites which do the comparisons themselves.
These tips are some of the steps that individuals can take to reduce the cost of their home insurance. Before embarking on major home renovations, policyholders should check with their insurance company to find out how much savings will result from the work which is planned. The insurer may have other suggestions that will result in cheaper home insurance at a lower cost to the homeowner. Either way, these are good places to start saving money on insurance rates.