Insurance can be a real financial burden, especially when you don’t understand what you are actually paying for.
As a result, I’m always looking for ways to decrease these costs.
There are various forms of insurance we have to deal with in our everyday lives including car insurance, life insurance, and homeowners’ insurance coverage.
The last of these, homeowners insurance, is one of the most unknown, complex, and expensive forms of insurance, yet it is something we should all understand as homeowners in order to decrease its financial burden.
To help in the quest to have affordable homeowners insurance, I want to discuss five great tips that will help you save money:
5 Tips to Reduce the Cost of Homeowners Insurance
1. Increase your deductible
A higher deductible will decrease premiums because technically, you will be responsible for more of the cost when you file a claim with your homeowners’ insurance.
Thus, if you can afford a reasonable increase in your deductible, this can greatly reduce your yearly premium.
For example, an increase of only $250 can decrease your premium payments by as much as 15%.
Just be prepared for a higher expected payment should you need to file a claim.
2. Make your home safer and less of a liability in the eyes of the insurance company
To reduce your premiums by up to another 15%, make sure your home is as safe as possible.
Install fire extinguishers, smoke alarms, and a home security system in order to help prevent home burglary.
Even adding a home security lawn sign can decrease your premium.
3. Be loyal to your insurance company
Insurance companies will reward you with more discounts if you insure all your eligible valuables through them and if you stay with them for a long period of time.
It’s always a good idea to continually shop around, but if your company is treating you right, try to work through them to get additional discounts before switching companies.
A loyal customer is any company’s dream.
4. Keep on top of your policy and review it each year.
Depending on your insurance policy type, you may be insuring your belongings as well as your home.
While this is completely fine, make sure that you keep on top of your policy and inventory your belongings regularly.
For example, if you no longer own something that is on your insurance policy, have that coverage removed as that will reduce your premium.
Why insure something that you no longer have?
5. Talk with a real person at your insurance company and ask for discounts
When you interact with your insurance company, call and speak with company representatives.
Get to know them and create a relationship there.
By establishing a strong rapport, the insurance company representatives will know you and your policy well, and therefore may take the initiative to remind you of changes in your life that can reduce your policy.
They will also be more responsive when you inquire about potential discounts.
Discounts exist for different age groups, different credit scores, methods of payment, and even changes to your neighborhood (like the addition of storm drains or fire hydrants); taking advantage of these can greatly reduce your yearly premiums.
Insurance doesn’t have to be the most stressful and expensive thing in the world.
Following these five simple steps will get you well on your way towards keeping you, your home and your belongings sufficiently covered while not breaking the bank.