Ways to Save on Homeowners Insurance
Homeowner's insurance can be quite expensive in some places. We have some advice on ways to save on homeowners insurance. The most basic and common sense fact is that the homeowners insurance premium will vary depending what company and what coverage you get.
Tip 1 - Shop and Compare Quotes
This used to take time before the Internet, nowadays, you can fill out a form and get a few phone calls from insurance agents within a few hours. Be sure to let the insurance agent know that you are interested in a homeowners quote but plan to shop around for the best deal so they can try their best to offer you the best package. Remember, if there is a price difference between two different companies, compare the coverage. Cheapest is not always the best.
Tip 2 - Research Past Complaints
Research past complaints from the BBB and National Association of Insurance Commissioners to make sure you are going with a legit company. Be very wary of companies with lots of complaints because when it comes time to try to file a claim, you don't want to have to fight your own insurance company.
Tip 3 - Raise Your Deductible
A deductible is the amount you have to pay out of your own pocket in a loss before the insurance is responsible to pay the claim. So it is natural that the higher the deductible on your homeowner's insurance, the more you can save on the policy. The standard homeowners insurance deductible is $500. If you can afford to raise it to $1,000, that is a great way to save on your insurance.
Tip 4 - Cost to Build Your Home
When trying to determine the right amount of coverage for your home, don't confuse how much your paid for your house with the cost of the land and the actual cost to build the house. Most of the time, the cost to build the house can be almost 40% lower than what you paid for your home.
Tip 5 - Homeowners and Auto Insurance
Get both your homeowners and auto insurance from the same insurance company. This can save you sometimes up to 15%. Still remember to compare the quotes with other companies.
Tip 6 - Home Security and Alarm
Most homeowners insurance companies will offer discounts of at least 5% if you have some sort of alarm system and smoke dedector. If you want to take it to the next level, install a sophisticated sprinkler system within your home, you might be able to save an additional 15%.
Tip 6 - Stay with the Same Insurance Company
The longer you stay with the same company, the more likely you will be able to receive your coverage at a reduced rate for being a long term policyholder.
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