In today’s tough economic climate, homeowners across the board are doing everything they can to save a few dollars here and there. If you’re in the process of cutting back, one area where you may be able to save money when it comes to your home is your homeowners insurance.
Data over the last five years reveals that homeowners insurance coverage has increased significantly, but the good news is that there are things you can do to lower the cost.
The easiest solution is to bundle your insurance. Many insurance companies offer discounts if you package multiple policies such as your car, boat and home insurance, so be sure to shop around and see where you can get the best deal. On average, you can save 5 to 15 percent if you purchase two or more premiums.
While most people look for insurance policies with small deductibles, in the long run, taking on more of the financial burden if something should happen to your house is a great way to save money. By raising your deductible, your monthly costs can decrease 5 to 10 percent.
Safety also helps with savings. Something as simple as installing carbon monoxide detectors, smoke detectors and alarm systems can reduce your monthly bill. It’s a good idea to ask your insurance agent what steps you can take to make your home more resistant to natural disasters as well. You may be able to save money on your premiums by adding storm shutters, reinforcing your roof or even buying stronger roofing materials. Older homes can even be retrofitted to make them better able to withstand earthquakes.
Just as you would do with a car or any other big-ticket item, taking the time to shop around is always smart. Be sure to check consumer guides, companies and online insurance quote services, which will give you an idea of price ranges and tell you which companies have the lowest prices. Keep in mind that you must obtain insurance in order to close your sale, so make sure you have compared different companies and found the best deal ahead of time so that you don’t get stuck with an expensive policy.
Also, it’s not necessary to insure a house for the amount that it was purchased for. Even if your house were to completely burn down, you would still have the land, so take this into consideration when deciding the total amount you need to insure for. A good insurance agent will be able to help you calculate the proper replacement cost of the house.
In addition to these tips, it’s wise to talk with your broker and see if they have any thoughts on how to lower the cost of your homeowners insurance policy. It’s also important to review your policy each year to ensure it still accurately covers your home.
For more information about homeowners insurance, contact our office today.