When you want to save money on your homeowners insurance policy, there are many things you can do.
One of the most important things to do is shop around. Comparing different companies and their rates can help you be certain that you’re getting the best deal on the best policy to fit your needs. You need to insure your home for how much it would cost you to rebuild, should a disaster occur. Generally, a homeowners insurance policy will cover the replacement of the house itself, and at least some coverage of possessions, depending on the type of disaster that occurs. Usually things like fire and theft are covered, as are some weather-related damages. It’s a good idea to check with at least three different companies in order to compare prices for their coverage.
When you make these comparisons, you do need to be sure that you’re looking at similar insurance policies. Different companies will package their insurance plans differently, so a straight price comparison may not tell you the whole story. Make sure you examine their different homeowners policies, so that you know that you’re looking at comparable plans that cover the things you need. It can also be a good idea to trim out unnecessary types of coverage from a policy. For example, if you have flood insurance added onto your homeowners insurance, but live in an area where floods are extremely rare, you may want to consider removing that.
You should also definitely look for any discounts available to you. If you have other insurance policies with different companies, it may be a good idea to try and get your homeowners insurance through one of the same companies. Many offer discounts and incentives to carry multiple types of insurance through them, and bundling different types of insurance can save you money. Most companies will give you quotes on what you could save if you transfer other policies to them, as well. Another source of discounts may be loyalty rewards; sometimes keeping an insurance policy with the same company for a long period of time will get you a discount as well.
When it comes to your homeowners insurance, there are also things that you can do to reduce your premiums each month. One way to combat higher premiums is to increase your deductible. This does mean that you have a higher out-of-pocket cost when you file a claim, but it can save you quite a bit month to month.
You can also make improvements to your home in order to save money on your homeowners insurance. If you life in an area with frequent strong weather, installing storm shutters or other types of wind mitigation may help lower your costs. Having a good fire alarm system, or home security systems can also help. Some companies may even offer discounts for having approved locks.
Homeowners insurance can be an expensive necessity, but there are things you can do to be sure you’re getting the best deal!