Are you new to being a homeowner? What are the different ways to save money when buying homeowners insurance policies? The average American homeowner spends around $1,272 a year on their homeowner’s insurance premium.
Before you dive head-first into your new house ownership journey, understand that insurance is critical to ensure that you don’t need to pay tons of cash in the case of an accident. However, some insurance plans can be expensive. So how do you ensure you pay as much as you need to?
Here are some tips that you can use to help lower the total cost of your homeowners’ insurance policy.
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Raise Your Insurance Deductible
By doing this, you can lower your monthly insurance premiums. It is because you are less likely to file a claim if you have to pay more out of pocket.
To make this work, you will need to be sure that you have the financial ability to cover the deductible if you need to make a claim. You should also keep a good emergency fund to cover the deductible if you have to make a claim.
Evaluating your homeowner’s insurance policy can also save you money when buying insurance. By taking the time to understand your policy, you can be sure to purchase the right amount of coverage for your needs.
Often, people purchase more insurance than they need, which can be expensive. Conversely, if you buy enough insurance, you could be financially protected if your home is damaged or destroyed. Therefore, it’s essential to understand your policy and purchase the appropriate coverage.
Improve Your Home Security
A small investment in home security systems, alarm systems, and security cameras can significantly save you money on your insurance premiums. Some insurance companies offer about 5% to 20% discounts on insurance premiums by having a more secure home. It is because homes with tight security are less likely to be a victim of a burglary.
Skip Small Claims
While it may be tempting to file a claim for every little thing that goes wrong, your insurance premiums will likely go up. In many cases, it’s cheaper to pay for repairs out of pocket than to file a claim. So, unless the damage is significant, it’s best to skip the claim and save yourself some money.
Be Aware of Lesser-Known Discounts
Many insurance companies offer discounts for installing smoke detectors and fire extinguishers. Some companies even offer discounts for having a green home, such as one that is energy efficient or uses solar power. Some offer discounts if you buy your policy online or at a certain age.
When shopping for homeowners insurance, ask your agent about loyalty discounts. Many insurance companies offer discounts to customers who have been with the company for a certain period.
Another discount is for being a non-smoker. It can save you up to 15% on your premium.
You can also get a discount for having a new roof. It can save you up to 10% on your premium. There are many other discounts available, so ask your insurance agent about all the available discounts.
Consider Your Home Improvements
If you have made any upgrades or improvements to your home, you may be eligible for a discount on your premium. Some home improvements, such as a new roof, can lead to significant savings on your premium.
However, others, such as adding a swimming pool, might increase your rate. Speaking with your insurance agent about how much your home improvements would lower your premium is important. You should also know what home improvements are eligible for these discounts.
Bundle Different Types of Insurance
You may get a discount if you bundle your homeowner’s insurance with your auto insurance. It can give you a discount on both types of insurance. You can also bundle your life insurance with your homeowner’s insurance.
You may also get a discount if you have multiple policies with the same company. Insurance companies offer these discounts because it makes managing one policy for multiple products easier.
Make sure to sacrifice coverage to save money, though. Make sure you have enough insurance to protect your home and belongings.
Build Your Credit Score
A good credit score is one of the most important things you can do when buying homeowners insurance. Insurance companies use credit scores to determine premiums, so the higher your score, the lower your rate.
A higher credit score means you’re a lower-risk insurance customer, which could lead to a lower premium. You can do a few things to help improve your score, such as paying your bills on time, maintaining a good credit history, and keeping your credit balances low. A credit monitoring service can also help you maintain a good credit history.
Remove High-Risk Items
These items can include things like trampolines, pools, and playground equipment. They are considered an attractive nuisance that children can play on.
These items may lead to accidents or injuries that can be an added expense to the insurance company. Getting rid of these items can lead to a lower premium as insurance companies consider them a liability risk.
Shop Around
Insurance companies always try to get new customers and offer lower rates to attract them. However, go with something other than the first company you get a quote from. It’s essential to shop around and compare rates before you buy.
You can use an insurance comparison website to get quotes from several companies. Remember also to check out reviews of the companies before you choose one. Once you’ve found a few companies you like, you can start negotiating.
Visit companies like LoPriore Insurance Agency on their website to learn more about what they offer. You can check out their rates and find huge discounts that can help you save money. Doing research can help in finding cheap homeowners insurance.
Money Saving Tips When Buying Homeowners Insurance
Buying homeowners insurance is a necessity when owning a home. Repairs are needed because accidents and natural disasters can cost money. Ensure you have the right coverage to get the financial security you need.
By researching and shopping around, you can find a policy that fits your needs and budget. There are many ways to save money on your homeowner’s insurance policy, so be sure to ask about discounts and compare rates.
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