There are many ways to save money when shopping for home insurance. Before deciding on a homeowner’s policy, try to look at the amount of coverage provided as well as any discounts there may be. It’s important not to just choose the first one you come across. The rates between companies can differ a considerable amount in some cases. Once you have chosen, it is a good idea to check a few different companies after a year or so.
Once you have done some comparison shopping you should consider looking to combine your policies with one company. Customers who purchase more than one policy are often entitled to significant discounts. It is probably best to get your life, auto and homeowner’s insurance from the same company if you don’t own more than one piece of real estate.
Another simple thing you can do is increase your deductible. If you increase this from $1000 to $2000 you can save up to $20 per month from your principle on your home insurance. It is likely you won’t claim on small amounts of damage, so by increasing your deductible you will less likely to have an impact if the worst happens.
It is also a good idea to get rid of coverage that is not needed, if you are still looking to save some money. A lot of Americans won’t have checked their policies for home insurance for at least five years. When you change the size of your household or amount of possessions you have, you might find that additional riders on your policies are no longer needed. The easiest ways to do this are to cut your coverage on electronics, expensive jewellery, or vehicles that you no longer own.
If you have items that you can easily replace yourself, you could eliminate the coverage to save a little more money. When you don’t have many assets, insurance riders can cover damage to expensive items such as computers. If the items are stolen or damaged, you can then replace them with your savings. Hundreds of dollars a year can be saved a year by eliminating unnecessary extra riders.
Finally you could try to find discounts on things that can easily be changed or thing you already do. Discounts change frequently and vary depending on the company. You could ask what discounts you qualify for and what steps you would go about to get them. An example of this would be discounts offered for installing a security system. Some companies may offer a structure audit of your home or neighbourhood watch program.
A large amount of a family’s budget can be used on insurance costs. So it is an area which you can cut back on to save a significant amount.
This article was written by Michael Turner.
