5 Tips To Save On Homeowners Insurance
Posted on by Kate
Homeowners insurance is an absolute necessity if you own your own home, and most likely a contractual requirement if you owe money on your home. However, just because you must carry the insurance doesn’t mean you are at the mercy of the insurance companies when it comes to how much you pay for your insurance coverage. A smart homeowner will make sure all the bases are covered to pay the least amount possible for home insurance.
Saving money does not have to mean that you sacrifice on the quality of your coverage. If you take the correct steps, you don’t have to go with a substandard or less safe insurance company in order to get the lower rates you need.
Tip 1 – Review the Policy prior to the renewal date
Don’t get caught unprepared by waiting until the last minute to look closely at the terms and coverages on your present policy. Sixty to ninety days ahead of your policy expiration, pull out your paperwork and make sure the policy still meets the needs you had when you originally took it out. Many home insurance policies have automatic coverage increases to accommodate rising real estate values. However, many properties have actually lost value over the last few years. Make sure your coverage doesn’t exceed the cost of replacing your home. Check any extra riders you may have on your policy to cover items you may no longer own. If you no longer have the jewelry, guns, furs or other miscellaneous valuables, you obviously no longer need to have these items covered by your policy. Many people forget they ever had these items included in the policy.
Tip 2 – Make sure any improvements in security and conditions have been accounted for
Have any new fire stations or fire plugs been added to your area which decreased the risks of a complete fire loss? Have you added a security system or deadbolt locks? Have you added motion sensitive lighting? Have you upgraded the plumbing or the electrical systems? All of these may not be accounted for in your present policy and may possibly lower the cost of coverage.
Tip 3 – Make sure you are taking advantage of potential discounts available
Most insurance companies have some sort of senior citizens discount available. Be sure you are taking advantage of it if you qualify. In addition, you may be able to combine your auto and home policies to obtain a discount.
Tip 4 – Review your need for your present deductible
Have your financial conditions, or your risk tolerance, changed so that you can now afford to carry a policy with a higher deductible. Has your household income increased? Have children moved out of the home and your expenses decreased? Lowering your deductible is a sure way to decrease your insurance bill.
Tip 5 – Always shop your policy around
Once you have reviewed your current home insurance needs, be sure to check with other insurance companies and insurance brokers to get quotes for the coverage you need. Competition is fierce among companies these days and you can usually save substantially by shopping around. Even if you do not end up changing companies, a quote from a competitor may help in negotiations with your current company.
In today’s tough economic climate, saving money is more important than ever. Don’t sit on your hands and let your insurance company get more of your money than it deserves.