Ways to Lower Your Homeowner Insurance Premiums
In today's economy, everyone is looking for ways to cut costs wherever possible.
If you haven't taken a look at your homeowner's policy in a while, perhaps it's time to revisit your coverage and see if there are ways to reduce those premiums without sacrificing a thing.
Here are some ways to do it.
First of all, it's important to understand that the price of premiums is largely based on what it would cost to rebuild it in case of disaster as well as how likely the structure is to be a total loss should a fire occur.
So if you live in a $500,000 house you will always pay more in premiums than your cousin John whose house is worth $120,000.
But that doesn't mean there aren't steps you can take to make those payments as low as possible.
-- Take your document, start making phone calls, and compare: visit with several agents and see if they can't get you a better deal for the money or the same coverage at a lower price.
The insurance market is a competitive one, and if you choose a new agent you should find one that offers great customer service along with great rates.
-- Make the modifications to your home that insurers' love: increase security by installing deadbolt locks, burglar alarms, and more smoke detectors.
If your house is older, it may have been built before building code specified a certain number of smoke alarms, and you may not have enough.
You can save about 5% in premiums by making these small improvements that will pay for themselves big over the long term.
And you and your family will be safer to boot.
-- Do you have a low deductible? Raising it just a little can save you a ton in premiums.
If your deductible is currently at $1,000, consult with your agent and see what would happen to your premiums if you increased that deductible to $5,000: the difference might astonish you.
Just be sure to keep enough money in the bank to cover the deductible in the unlikely event that a disaster should occur.
-- Bundle your homeowner's insurance with your car insurance.
Most agents reduce premiums substantially when you choose to carry several different policies with them.
Keep in mind that flood and earthquake damage are generally not covered under a standard homeowner's policy.
If you live in high risk areas for these disasters, you'll need to purchase separate coverage through FEMA.
If you haven't taken a look at your homeowner's policy in a while, perhaps it's time to revisit your coverage and see if there are ways to reduce those premiums without sacrificing a thing.
Here are some ways to do it.
First of all, it's important to understand that the price of premiums is largely based on what it would cost to rebuild it in case of disaster as well as how likely the structure is to be a total loss should a fire occur.
So if you live in a $500,000 house you will always pay more in premiums than your cousin John whose house is worth $120,000.
But that doesn't mean there aren't steps you can take to make those payments as low as possible.
-- Take your document, start making phone calls, and compare: visit with several agents and see if they can't get you a better deal for the money or the same coverage at a lower price.
The insurance market is a competitive one, and if you choose a new agent you should find one that offers great customer service along with great rates.
-- Make the modifications to your home that insurers' love: increase security by installing deadbolt locks, burglar alarms, and more smoke detectors.
If your house is older, it may have been built before building code specified a certain number of smoke alarms, and you may not have enough.
You can save about 5% in premiums by making these small improvements that will pay for themselves big over the long term.
And you and your family will be safer to boot.
-- Do you have a low deductible? Raising it just a little can save you a ton in premiums.
If your deductible is currently at $1,000, consult with your agent and see what would happen to your premiums if you increased that deductible to $5,000: the difference might astonish you.
Just be sure to keep enough money in the bank to cover the deductible in the unlikely event that a disaster should occur.
-- Bundle your homeowner's insurance with your car insurance.
Most agents reduce premiums substantially when you choose to carry several different policies with them.
Keep in mind that flood and earthquake damage are generally not covered under a standard homeowner's policy.
If you live in high risk areas for these disasters, you'll need to purchase separate coverage through FEMA.
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