Homeowner’s insurance is something that no homeowner can afford not to have. Just because having coverage is a must, it does not mean that you cannot find a good deal on your premium. Many people accept whatever their insurance company offers without doing any research before they sign. Unfortunately, many insurance agents are not looking out for your best interests, and will stick you with a higher priced plan. If you are purchasing a new policy and the price seems high, here are a few ways you can save.
1. Higher Deductible- Having a low deductible may seem like a good idea, as you will pay less out of pocket in the event that you need to use your insurance. Insurance company’s make money by assuming you will never need to make a claim. You can take a page from the insurance company’s book, and assume the same. Since your chances of making a claim are very low, consider raising the deductible on your plan. Obviously you do not want to set it so high that you would be unable to procure the funds in an emergency, but set it as high as you are comfortable with. This one minor adjustment can result in significant savings on your premium price.
2. Eliminate Unnecessary Coverage- Chances are if you live in Florida you will never need protection from an earthquake or heavy snowfall. Many insurance companies include these things in their policies to increase your policy’s price. Likewise, consider dropping your jewelry floater if you do not own expensive jewelry that you keep in a box. If your only expensive jewelry is what you wear on a day to day basis, chances are you will never need this coverage.
3. Combine Your Policies- If you have car insurance through one insurance provider and home insurance through another, you can often save up to twenty-five percent on your insurance if you combine policies. Likewise, taking out life insurance or other types of insurance with the provider you choose for your home’s coverage can save you quite a bit overall.
4. Avoid High Risk Factors- Many insurers will charge more for your premium rate if you have certain high risk factors. For example, trampolines and swimming pools as well as more aggressive breeds of dogs increase liability that you will have someone sue you for injuries on your property.
5. Do Not Let Your Policy Lapse- As is true with any type of insurance, letting a period of time pass between coverage can greatly elevate your price. Make sure all payments are sent on time and be proactive about renewing your policies.
6. Ask for Discounts- Very few people ask for a discount when they are given a quote. You would be surprised how many discounts can be granted, but you have to ask. The majority of insurance agents are not going to give you the bottom price first, as with any form of business there may be room for negotiations. This is especially true if you have had one insurer for several years.