Homeowners insurance is a must in today’s world. It safeguards your home from damage and theft, and many mortgage companies require you to have it.
When you buy home insurance, you want to make sure you’re getting the coverage you need — but there are ways to save money. Read on for tips on how to save money when buying a home insurance plan.
Invest in A Security System
If you have a burglar alarm monitored by a central station or tied directly to a local police station, you could snag a 5% discount on your annual homeowner’s insurance premium. To qualify for this discount, the homeowner must show proof through a bill or contract. Installing smoke alarms in your home is another way to save 10% or more on your annual homeowner’s insurance.
Increase Your Deductible
Like health insurance and car insurance, the higher the deductible you choose for homeowners insurance, the lower your premiums will be. That said, the drawback to choosing a high deductible is that you’ll be responsible for more out-of-pocket expenses. These costs can add up.
Check for Multiple Policy Discounts
Many insurance companies offer a discount of 10% or more on their homeowner’s policies to customers who maintain other insurance contracts with them (such as auto or health insurance). Talk to your homeowners insurance provider about getting a quote for other types of insurance. You may end up saving on multiple premiums.
Plan for Renovation Early
It’s a good idea to consider the materials that will be used when building an addition or adjacent structure to your home. Because they are highly flammable, wood-framed structures will cost more to insure. On the other hand, structures made of steel or concrete will be less expensive because they aren’t as likely to sustain damage from a fire or bad weather.
If you’re planning on building a swimming pool, do consider the insurance costs associated with owning one. Adding potentially injurious structures like pools and trampolines to your property can increase your annual insurance bill by 10% or more.
Pay Off Your Mortgage
If you own your home outright, you’ll likely see your premiums drop. This is because the insurance company figures that if something is 100% yours, you’ll be more careful with it.
Review Your Insurance Policy Regularly
When shopping for an insurance policy, it’s a good idea to compare prices and coverage offered by several companies. Even after purchasing a policy, you should periodically compare the costs of other insurance policies to your own. As an additional step, policyholders should check their existing policies to see if any changes have occurred that could lower premiums.
