Insurance is one of those things that you pray you'll never need. That also makes it one of the things you hate to pay for. In many cases, homeowners are paying more than they have to. Thankfully, there are tricks to lower your homeowners insurance. Let's take a closer look.
Ask for a Lower Price
First things first. If you've been with your company for a long time, ask about lowering your costs. If you've never had a claim, have a good credit score, and have paid your premiums on time you should qualify. You may need to speak to someone in management to make it happen, but be persistent.
I hate it when I call my insurance company to cancel (since I've switched to another company) and they suddenly can come up with a lower price. Give them the opportunity to do it before you switch.
Shop Around
If your company won't work with you, shop around for a better price. Even if your company will work with you, it pays to know what other companies are charging. This can even be a great piece of information to have to get your current company to lower your price.
Raise Your Deductible
If you have a healthy emergency fund, consider raising your deductible. You want to raise it to an amount that is still doable should something happen, but this can be a great way to lower your costs. You'll be surprised at how much more affordable your insurance can be when you raise your deductible to $5,000.
Bundle Your Car and Home Insurance
Another great way to save is to bundle your homeowners and car insurance. Many companies offer both and are willing to give you a much better price than if you have your policies with different companies. Be sure to shop around and see which company offers the best price for both auto and home insurance combined.
Invest in an Alarm System
Homeowners insurance companies will reduce the cost of your insurance when you have an alarm system. That doesn't mean just any old alarm system. You want to go with an actual company that monitors the alarm, such as ADT (and make sure that the savings is worth the cost of the system and monitoring fees).
Keep a Good Credit Score
A good credit score will affect how much you pay for your insurance policy. If your credit score isn't in a good spot, do what you can to raise the score. Pay off your debt, reduce your debt to credit ratio, etc. since many insurance companies use your credit score to determine your insurance rate.
Make Sure You're Not Over-Insured
Last, but not least, make sure you're not over-insured. For example, you don't want to be insured for the cost of your home and property. Your property isn't going to be damaged by a natural disaster. In other words, you want to have an insurance policy that covers the cost of your home and how much it would cost to rebuild. Speak to your insurer to make sure your land isn't included in the covered value.
Chances are you're paying more than necessary for your homeowners insurance. Thankfully, there are so many things you can do to reduce the cost.
Leave a Reply