Without doubt buying, and owning, a new home will probably be the biggest financial investment you can make in your lifetime.
And when it comes to insuring your home against damage, theft or loss, it makes sense to get an insurance policy that offers the most protection for the lowest premium.
So how can you be sure you have (or are about to get) the right policy for the best price?
Here are five tips you can follow to help you do just that…
Five tips for affordable homeowners insurance
When it comes to saving on your homeowners insurance you don’t want to cut down on your coverage limits unnecessarily in order to save a buck or two. With that in mind there are 5 tips to help you save money on your insurance premiums.
In no particular order they are:
- Check your deductibles & policy provisions
- Ask about discounts (e.g. alarm system, smoke detectors, etc.)
- Know your credit score
- Consider bundling other policies
- Get an annual review
Check your deductibles
It’s all in the numbers.
The overall cost of any insurance policy is based on the coverage limits established in the policy, your deductible amount, and other possible risk factors noted in your policy.
- Do you have a pool or trampoline?
- Do you have a garage, or park your car on the street?
- How old is your home?
- Do you have any safety features installed?
How you answer these questions will determine, in large part, how much you’ll pay.
One way to save on your premium is by increasing your deductible amount (i.e. the amount you’ll pay out-of-pocket before the insurance company kicks in with a claim check).
Increasing your deductible, even a bit, can lower your annual premiums. And the same is true if you have or need renters insurance.
Ask about discounts
When speaking with an insurance agent ask about any other possible discounts that may apply, such as discounts for safety devices installed (smoke detectors, etc.).
After all, it never hurts to ask.
And you just might be surprised about other possible premium discounts that some companies offer, such as membership in a professional organization or college alumni association.
Believe it or not some insurance companies offer premium discounts based on a good credit score.
This one was new to me until I qualified for it.
It’s not something I ever thought to ask about, so I was very happy when my local agent brought it up. Having good credit means the insurance company sees you as less “risky” — and as you can guess the cost of your policy is based on real, or perceived, risk.
So knowing about this possible discount, and your score, gives you something to ask your insurance agent when you schedule your free insurance review (more on this later)…
Bundle policies together
Talk about bundling policies is all the rage these days.
Just watch a bit of TV and you’ll see FLO talking about how you can save when you bundle policies.
The truth of the matter is that many companies will give you a discount for getting more than one policy with the company, such as your auto and homeowners policy. By doing so you can often qualify for a discount on BOTH policies.
However, only bundle policies if you are going to save money on each policy without cutting your coverage limits and amounts.
Get an annual review
If the only service you get with your current insurance company is an 800 number you can probably do better.
For example, I was with Liberty Mutual for years and never bothered to shop around for a better price, or speak with an insurance agent. But after they raised my homeowners insurance by $500 a year (for no reason, by the way) enough was enough.
Not getting an annual review sooner cost me, big time, because when I finally did sit down with a local agent he was able to save me more than $2,000 a year off my auto and homeowners insurance.
And without cutting coverage options, or selecting a 2nd rate company.
So it makes sense to speak with an independent agent near you because they know the area and can get you access to more insurance companies, and policy choices. And that usually translates to more savings.
Follow some (or all) of these tips and you’re sure to get the policy you need at the right price.
Get your free no-obligation quotes today
Are you searching for affordable home insurance?
Get your FREE, no-obligation homeowners insurance quotes today.
Save time and aggravation with a free, customized, quote comparison from qualified insurance providers. It only takes a couple of minutes so why not enjoy peace of mind by getting the coverage you need.
Or you can search through our list of homeowners insurance providers for your State or Metro area that can help you get the insurance coverage you need.
Either way the choice is yours…