How to Save Money on Home Insurance
As a homeowner, having a valid home insurance policy is vital in the event that major damages happen to your home or there’s water damage that needs to be repaired. Even though it’s important to have home insurance, that doesn’t mean it’s always the most affordable thing in your budget. There are a few ways, though, that you can save on your home insurance so that you get the most for your money. Here are a few tips!
Contact An Insurance Broker
An insurance broker can shop amongst many insurance companies to find the best price and policy that works for you and your needs. With a direct company, there is only one offering with little flexibility.
Bundling Your Policies
Most homeowners also own cars, motorcycles, RVs, boats – or any combination of those things. All of these things also need insurance, and if you have multiple policies, you may be able to save some money by bundling them together with the same provider.
Buy A New House
If your home is less than 10 years old, there could be discounts you qualify for on your home insurance. New homes are less likely to have significant issues with them, which results in fewer claims against the house and therefore the insurance company saves money.
Have An Alarm System
The biggest risk to almost any home is theft, and insurance companies know they will need to provide the replacement value of the items stolen from your home if that happens. If you have an alarm system, it’s likely to deter someone from breaking in and will save the insurance company more money in the long run.
Pay Annually (Not Monthly)
Most homeowners, and even car owners, will opt to pay their insurance premiums monthly because it’s much easier to budget for. However, if you can afford it, some insurance companies offer discounts for paying a full year’s premiums upfront instead of monthly.
Consent To A Credit Check
Not all insurance companies will ask about this, but if yours does, then permitting them to run a credit check could save you some money. If you have a good credit rating, the insurer may give you a better rate as they expect you are less likely to file a claim.
Don’t Be Over-Covered
When you’re in the process of looking for home insurance, you may try to get the maximum coverage because you don’t want to take any chances. But you need to take a look at what you actually need and the value of the items in your home. Talk to your broker about how much coverage really makes sense for you.
Avoid Small Claims
While you may be covered for every accident that happens to your home, think about a claim before you file it. If you avoid making small claims against your home insurance, you may be able to save a lot of money. If you have a minor thing to be fixed that isn’t much more than your deductible, you might be better off paying for it on your own.
Increase Your Deductible
If you can afford to do so, increasing your deductible will reduce the amount of premiums you pay. When a claim does happen, you will be responsible for a bigger portion of it before the insurance payment kicks in, but it can save you money every year, especially if you don’t have to file a claim.
If you have questions about the home insurance policy you currently have, make an appointment to talk with one of our brokers and review your coverage. We will be able to answer the questions about what each component of your insurance means, and if it’s really necessary for your unique needs.