Home insurance is one of those necessary evils. It’s something you have to have in order to protect your home and possessions, but it can be a real budget-buster. Luckily, there are several things you can do to keep your home insurance costs under control. Here are a few tips.
Shop around
All home insurance companies have their own policies and rates. Some will charge higher rates than others, so it pays to shop around and compare rates before you commit to a policy. Don’t just go with any company you find or the one that offers the lowest rate; make sure you’re getting the coverage you need at a price you’re comfortable with.
Increase your deductible
Deductibles are the money you need to pay before your insurance kicks in. The greater your deductible, the smaller your premium will be. Of course, this also means that you’ll have to pay more if you ever need to file a claim, so make sure you can afford the higher deductible before you commit to it.
Bundle your policies
If you have more than one kind of insurance policy—for example, car and home—see if you can get a discount by bundling them together with the same company. Many insurers offer significant discounts for customers who carry multiple policies with them.
Tips for Bundling Home Insurance
If you decide to bundle your home insurance policy with another type of insurance, you should keep a few things in mind:
- Ensure that the coverage levels are adequate for both policies; you don’t want to be underinsured.
- Ask about any discounts or incentives available when bundling.
- Check to see if you can save by paying your premiums annually rather than monthly.
Modify Coverage to Fit Your Needs
Your home is unique, so there’s no reason to pay for coverage you don’t need. If you have an older home, consider dropping certain types of coverage that don’t apply to it. Also, if your home has unique features or needs extra protection from certain risks, add those coverages to your policy.
How much coverage do you need?
You want to avoid being underinsured and getting stuck with a hefty bill if something happens to your home. Take the time to review your policy and ensure you have enough coverage in an emergency. Make sure to take into consideration other buildings on your property, such as a shed, garage, or guest house.
Reduce Risks
There are various things you can do to lower the risks associated with your home. For example, installing an alarm system can help deter burglars, while updating your electrical and plumbing systems can reduce the risk of fire or water damage. These steps can save you money on your premiums as well. Replacing your roof or siding may also save you money in the future, as it can prevent more costly repairs. Additionally, upgrading your HVAC system can save money on your energy bills, which can save you money on your premiums.
Improve Your Credit
Lastly, make sure your credit is in good shape. Insurance companies consider a person’s credit score when determining their rates, so you can save money on your premiums if you have a high score. Keeping balances low and paying bills on time can help boost your score.
The Bottom Line
By taking the time to research and compare home insurance policies, you can save money while still ensuring that your home is adequately protected. Don’t be afraid to shop around, ask questions and make sure you’re getting the coverage you need at a price that works for you. With a little effort, you can save money on home insurance and have peace of mind knowing that your home is safe.
