When you hear the phrase lower your home insurance costs, what do you think? If you’re like most people, the first thing that pops into your head is probably something along the lines of how can I get someone else to pay for my home insurance? While getting home insurance might not be realistic, there are plenty of ways to lower your costs through smart choices and careful planning. Read on to learn seven tips for how to lower your home insurance costs.
(1) Reduce The Amount Of Coverage You Have
Determining how much insurance coverage you need and what kind of plan is best for you, can be tricky. An experienced agent can help. Talk to your agent about increasing deductibles on certain portions of your home policy to lower premiums. When it comes to insuring your property, lowering deductible amounts is a great way to cut home insurance premiums. Speak with an agent about ways to lower your premium by raising your deductible level, but make sure you have enough cash saved in an emergency fund so that you won’t have to borrow money when a disaster strikes.
(2) Raise Your Deductible
It’s a given that higher deductibles lower home insurance rates. But here’s what might surprise you: raising your deductible That saving gets even bigger, when you go from deductible, in those cases, rates can drop by nearly half, if you’re willing to forgo some coverage like damage caused by floods and earthquakes you can drop premiums. Just be sure that you have enough in emergency savings to cover large unexpected expenses and keep yourself from going into debt should an unfortunate event occur. Also, note that different insurers may vary their rates based on which type of deductible they offer. Make sure to do your homework so you know exactly how much you will save on each type of policy.
(3) Cut Back On Your Policy Limits
Before you lower your home insurance costs, check to make sure you’re not over insuring. Most homeowner’s policies cover personal property with a limit of 50 to 75 percent of your home’s replacement cost. Make sure you can’t get away with paying less without leaving yourself open to financial loss if an accident happens. If so, drop those limits accordingly, the higher they are, generally speaking, the lower your premiums will be. But do keep in mind that reducing these amounts means that in case of disaster, you may have to pay more out-of-pocket for repairs and replacements.
(4) Purchase Online
When you buy homeowners insurance, look for carriers that operate online. You can typically find quotes, and apply and manage coverage all through your web browser. There are several benefits to buying insurance in that way. One is instant gratification: since you complete everything online and get an immediate quote back, you don’t need to wait until a salesperson calls you back or sends you paperwork in the mail. Another is price comparison shopping: once they know what coverages and deductibles they want, most people quickly have a handful of insurers from which to choose.
(5) Bundle With Other Insurance Providers
If your car insurance provider also offers homeowners coverage, it might be a good idea to bundle your policies. Doing so will often allow you to save money on your auto policy by bundling it with your home insurance. If you own more than one house, you may want to look into getting both of them insured under one company as well; oftentimes, bundled discounts apply. It’s important to note that many insurance providers charge extra fees for bundling so make sure it’s worth it before going through with it!
(6) Compare Rates Before Renewing Your Policy
Shopping around for home insurance can yield savings of 10 percent or more. With some insurance companies, you could save even more by qualifying for a discount if you own a newer home, have taken fire-safety precautions, or belong to an association. In any case, it never hurts to see what other insurers offer. Click here for a list of tips on how to lower your home insurance costs. If you don’t have much time, click here for easy ways to get started. Just be sure to check out rates from at least three providers before renewing with your current insurer! The same goes for car and health insurance, too. You might also want to consider bundling your auto and home policies together with one provider. Doing so can often reduce both your total premiums and deductibles because many companies offer discounts when you buy two policies from them in one transaction. The same goes for life insurance; you may be able to get a better rate by purchasing life coverage through the same company that insures your home and car. Remember that these are just guidelines; all states have different regulations regarding property/casualty laws and most homeowner’s insurance contracts differ as well. This means there is no one size fits all answer when it comes to saving money on insurance.
(7) Buy Term Over Whole Life Insurance
Typically, term life insurance is considerably less expensive than whole life insurance. The type of coverage you choose can have a significant impact on your annual premiums. Consider buying a cheaper term policy to cover yourself for, say, 10 years and then pay for your medical care with money you would have used to fund your whole life. You can even roll that money into an HSA (health savings account) or IRA (individual retirement account) and still get tax benefits while lowering your out-of-pocket costs. Since we’re all getting older by the second, it’s also a good idea to revisit your needs every few years just to make sure you still need as much coverage as you originally thought. A lot can change in three years!