Tips to Help Reduce Your Premium Cost – Home Insurance
Your home is probably the most expensive thing you will ever purchase, so you want to make sure it is adequately insured against loss. But, at the same time, you don’t want to overpay for your coverage. Fortunately, by following 6 basic home insurance tips, you can insure your home against loss while resting assured you are not paying a higher premium than you need to pay.
Don’t Over Insure Home insurance should cover the replacement cost of your house in case of catastrophic loss. But, you don’t want to be over insured. You just want enough insurance to rebuild a comparable house on your property. You should meet with your insurance agent every couple of years and estimate the cost to rebuild your home. If the cost has significantly increased or decreased, then you should adjust your insurance amount accordingly. Your home insurance should also cover the replacement value of your furnishings inside the home.
Increase Your Deductible
If you increase the size of your deductible, your premiums should be reduced. Basically, by increasing your deductible, you are insuring yourself for any damage less than the deductible. However, before you talk to your agent about increasing your deductible, you need to make sure you have enough money in savings to cover any smaller damages that may occur.
Ask About Discounts
Many insurance companies will give you discounts on your premiums if your home has additional security and safety features such as burglar alarms, smoke alarms, a fire extinguisher system, or high security locks. Additionally, you can often get a discount if your home is located near a fire hydrant or a fire station. Even if you have had your home insurance policy for several years, you should still take the time to discuss available discounts with your insurance agent.
Combine Your Insurance Policies
Insurance companies will often give policy holders a break on their price if they have more than one policy with their company. Consequently, you may want to consider purchasing your home, automobile, and life insurance from the same company.
People tend to stick with an insurance company once they buy their initial policy. But, your current insurance company may not be the best choice for you from a financial standpoint. By spending a few hours doing a little comparison shopping, you might find that you could save a significant amount of money by switching to another insurance company. However, before you switch, you should make sure you trust the new insurance company to handle any claims in a reliable manner. Consequently, you should always balance savings in your premiums with the company’s ability to help you at the time of a catastrophic loss.
Some insurance companies consider homeowners with a good credit rating to be a better risk than homeowners with a lower credit rating. Consequently, you should try and keep your credit rating high to get the best possible price.
Your home is probably the most valuable thing you own, so you definitely want to make sure you will have enough money to replace it in case of fire, flood, or some other disaster. By following the 6 basic tips for discount home insurance, you can insure your home at a price you can afford.