It might be a hard pill to swallow, but the truth is that we need insurance. Insurance protects our finances and investments - it provides us with peace of mind knowing that if something happens, we'll be taken care of. But you don't want to pay more than necessary for this type of protection. The cost can vary greatly depending on what provider you choose and where your home is located, so here are some tips for saving money on home insurance
1. Take advantage of a multi-policy discount
Consider bundling your auto and home policies together with the same insurer. Get quotes from all major providers in your area. Sometimes, you'll find that bundling these policies could help you save up to 20% or more on home and auto insurance. This requires a degree of caution, however, as you need to make sure that buying the policies from the same provider makes sense overall. For example, it may still work out cheaper to pay full price for the policies with separate providers. It’s also important that each of the policies is suitable for your situation and you aren’t sacrificing the level of protection you’re getting just to get what might be a relatively small discount.
2. Increase home security
If you can show that you have a robust home security system in place, some insurers will offer you a discount on your rates. This could be in the form of a reduced rate or even a waiver of certain deductible amounts. You don't need to spend a fortune on an elaborate security system - even something as simple as deadbolts and a burglar alarm will help you get a discount.
3. Shop around
Because prices change from one insurer to the next, it’s important that you shop around. You might find that some providers offer lower premiums while others provide more frequent discounts on your bill or higher coverage limits at no extra cost. Before you sign up with a new provider, always compare rates and ask about any discounts that might be available.
4. Raise your excess
One way to reduce your premiums is by raising your excess amount. This is the amount of money you have to pay out of pocket before the insurance company starts paying claims. For example, if you have a $500 deductible, you'll need to pay for the first $500 of any damage that occurs to your home. Raising your deductible from $250 to $1,000 could save you some cash on your monthly premiums. Just be sure that you have enough money saved up to cover the deductible amount in case of an emergency.
5. Get your property Inspection done
Having a home inspection is not costly, but it can save you money on your premiums. If anything goes wrong with your roof or air conditioning system and the inspector identifies an issue that needs to be fixed, be sure to get the repairs made as quickly as possible. This shows insurers that you're proactive about maintaining your home’s functionality and safety - and as a result, you may be eligible for discounts on your premiums.
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6. Improve Your Credit Score
Believe it or not, your credit score can have an impact on your home insurance rates. If you have a low credit score, you'll likely pay more for home insurance than someone who has a high credit score. This is because insurers see those with low credit scores as being more risky - they're more likely to make a claim and more likely to default on their policy.
There are a few things you can do to improve your credit score, such as paying your bills on time and keeping your credit utilization low. Regularly checking your credit score and addressing any issues that appear will help you get better rates on home insurance.
Save Money On Your Home Insurance
In summary, if you want to save money on your home insurance, it's important that you know what policies are available at each company and compare them side-by-side. If a policy is not right for your situation or needs, then shop around some more until you find the perfect match.For more, check out these resources.
One other thing most homeowners neglect to do is to negotiate their home insurance rates each year. Just like car insurance, the premiums you pay should go down as time goes along because your risk of accident is lower. The insurers are always willing to lower prices because they know that they're unlikely to lose you as a customer if their price is too high, so take advantage of this fact and negotiate!
