Reducing Costs of Home Insurance

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Reducing-Costs-of-Home-Insurance

Everyone knows that home insurance is a great form of financial protection should the unexpected occur. However, it is a very expensive form of protection.
In this struggling economy it is important that every cost that can be slashed be slashed. There are several things that a homeowner can do to reduce the cost of their home insurance rates.
The first way to slash homeowner insurance costs is to increase home security. Home security improvements can come in the form of dead bolt locks, smoke detectors, fire extinguishers, and burglar or fire alarms.
Most insurance companies will offer discounts if you only have one or two of these precautionary security devices. However, you may have to ask specifically for a discount.
The second way to cut insurance costs is to maintain a credit score that is as high as possible. Credit scores are an indication of responsibility that home insurance companies take very seriously.
They know from experience that the general rule is that responsibility directly correlates with the number of claims a person is likely to have. As a result, people with a higher credit score are determined to be more responsible and are given lower rates.
The third was to lower your insurance costs is to combine all of the policies you can into one plan. This will require some research, but most companies provide packages for auto and home insurance that will cost less than to buy an insurance plan for both your car and your home.
Sometimes the total cost is even lowered by 30%. In addition, it is much easier to work with one agent than several different ones.
The fourth way to lower your home insurance rates is to keep your home up to date and in excellent repair. Some insurance companies offer savings for a new roof, electrical, HVAC, and plumbing updates.
The discounts are often not enough to qualify a repair job unless you already need to have the job done. However, if you are planning on doing it anyway, make sure you get the appropriate discounts if there are any available.
The fifth way to lower insurance rates is to make sure that you are not covering more than you need to. The amount of insurance that you have to pay should not be the same amount as you paid for the home.
If the amount you are paying is that high, find out what is going on to make insurance so extremely high and fix it. By doing this you will also show the insurance company that you are aware of your insurance and willing to change if things are not going correctly.
The sixth way to lower your home insurance is to avoid deductibles. A deductible is the portion of the claim that has to be paid before the insurance company will pay for the rest of the claim.
Generally, the deductible correlates directly with the premium. The lower the deductible, the higher the premium will be.
A deductible should stay in the range from $100-$5000 and a typical homeowner should have a $500 deductible. The deductible should never be more than you can pay, but it can save you a lot of money to have a high deductible.
Seventh, simply go in and talk to your home insurance agent about other possible ways to save money. Generally, these home insurance agents are very good about making sure you get as many of the discounts as possible.
However, it never hurts to ask a question. There may be a discount that you have not been considered eligible for previously.
Eighth, when looking for home insurance it is important to shop around for the best rates. Since the birth of the internet, finding the most ideal home insurance has never been quicker or easier.
Many insurance companies will provide you will several different insurance quotes. It is myth that all insurance companies are the same. They usually offer similar services, but prices and quality can be very different.
By following these eight tips you will be able to effectively protect your family and yourself while slashing the prices on homeowner insurance rates and saving more money.

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