While home insurance is a necessary expense when it comes to protecting your property and valuables, there’s no reason why it should be excessive! Below are some quick and easy steps that you can take to cut down on extra costs.
Shop Around
Not all home insurance companies are created equal! The price of individual policy quotes are based on a number of different things, but one of the many ways in which you can lower your personal costs is to separate the cream of the crop. Ask neighbors, check the phone book, read customer review magazines, and generally do whatever you can in order to get a handle on the best insurers in you area. Once you’ve narrowed the list down, call each company to discuss policy options and ask what they can do to lower your rates.
Look Into Discount Options
A variety of discounts may be available to you, depending on the situation. Retired homeowners, for example, are often given discounts because they are at home more often and are less likely to be burglarized as a result. Some insurance companies may also be willing to negotiate a discount if you install deadbolt locks, fire alarms, or a burglar alarm system. However, these are not always cost effective, so be cautious before deciding to invest in such a purchase.
Be Strategic When Purchasing a Home
You can often get home insurance discounts if you are located near a police station, a fire hydrant, or in a community with a professional fire department. If your home is less than 10 years old, or has new and improved electrical and plumbing systems, you may also be eligible for a price break. Since these types of discounts are difficult to negotiate if you already own your home (unless you happen to be quite lucky!) look for potentially helpful features before you make a purchase.
Be a Loyal Customer
Many insurance companies offer reduced rates to customers who have been policy holders for many years. This is especially likely if you have lived in the same home for a long period of time and have not made any major claims since taking out the policy. Home insurance companies want to reward their members for taking good care of insured homes – after all, this saves them a great deal of money! In many cases they will pass those savings on in return for years of loyal subscription.
Raise Your Deductible
A deductible is the amount of money a policy holder is required to pay before the insurance company will “pick up the bill,” so to speak. In most cases a home insurance deductible will be at least $500; however, if you feel comfortable fronting more cash in the event of a crisis or simply don’t live in an area where property damage is a high risk, you can lower your monthly payments by choosing a higher deductible.
If you’re concerned about home insurance payments, reduce them using the quick tips mentioned above!