You’re woken in the middle of the night by the sound of your fire alarm going off. The smoke begins to fill your bedroom. You jump out of bed and get out of your house as soon as possible Luckily, you’re safe and sound. You can’t say the same for your house. You’re going to have to pay a ton of money to fix the damages. In situations like this, even a cheap homeowners insurance policy can help save you a ton of cash. We can help you find the best policy for your wallet. Check out this guide to learn more.
Shop Around:
When it comes to buying anything, you don’t want to go with the first company who seems to be giving you a good deal. Opening up a home insurance policy is no different.
Speak to a few independent agents in your area or visit insurance websites. Most of them will allow you to get a quote right then and thereafter you enter your information.
After you get three or four quotes, you can choose the cheapest policy that you were offered. Remember that getting a quote doesn’t lock you into a policy.
Increase Your Deductible:
Your deductible is the amount of money that you have to pay out of pocket for home repairs before your insurance company will step in. To explain, let’s go back to our example from the beginning.
Let’s say that the fire did $3,000 worth of damage. Your deductible is $500. That means you’ll pay $500 toward the repairs, and your insurance company will pay $2,500.
This being said, if you increase your deductible, you’ll shave some money off your premium. The simple act of bumping that $500 deductible up to $1000 will do wonders.
Just make sure that you can afford a more expensive deductible. Having a cheaper premium won’t help you if you have to pay too much out of pocket for repairs.
Review Your Personal Property:
Most types of insurance don’t stop at covering your floors and walls in the event of a natural disaster. They also take care of the things inside your house like your rugs, computers, musical instruments, kitchenware, jewelry, and family heirlooms.
If you want, you can put your expensive items on a coverage schedule. Your insurance company will compensate you the full amount for these items, but you’ll have to pay a little extra every month for what you have on the schedule.
The thing is, as the years go on, you’ll most likely get rid of a lot of the items you have scheduled. When things get tight, you may have to trade your artwork in for cash.
Maybe you gave a family heirloom to another person. Either way, you might want to drop them from the schedule, so you’re no longer paying for them.
Create a Safer Home:
Your insurance company will reward you for being precautious. Every floor in your home should contain a smoke detector and fire extinguisher. You get extra points if your smoke detector system alerts the local fire department when it goes off.
Having a home sprinkle system will stop a fire in its tracks. Putting these fire precautions in place won’t be easy on your wallet, but they can save you over 30% on your policy.
Another way you can save is by investing in home security. Put in an alarm that notifies the police department when someone tries to break in, install a deadbolt on all your exterior doors, and opt-in for smart technology that will notify you of suspicious activity.
Keep in mind that not all security systems will give you a discount. You’ll have to check with your insurance agent to find out which systems qualify before you start shopping around.
Invest In a Few Upgrades:
Are you planning on replacing your roof? Do yourself a favor and call your insurance company before you do. Depending on what type of materials you use, you’ll be able to get yourself a nice discount.
For example, investing in materials that are impact resistant could save you tons because you won’t be as at risk for filing a claim when a hailstorm blows through your area. Storm shutters are also a decent investment when you’re looking for good insurance.
Beware of Attractive Nuisances:
Having a pool can be a tempting prospect. It’s nice being able to take a dip at the end of a long day, and swimming is great exercise. The problem is that your insurance company sees it as an attractive nuisance.
It’s a potentially hazardous home addition that attracts children. If someone falls into your pool and gets hurt or worse, it will end in a lawsuit. That will result in more financial stress for your insurance company.
Bundle Your Policies:
Did you know that you can bundle your home insurance and auto policies? It will net you a multi-policy discount that’s not too shabby. You might be able to save up to 25% on the cost of homeowners insurance.
It’s also pretty convenient to throw a single payment at one insurance company instead of dividing your finances across several. We recommend bundling everything from car insurance to motorcycle coverage.
Find Cheap Homeowners Insurance:
If you don’t invest in at least some form of home insurance, you’ll regret it later. Most people don’t have the amount of money needed to repair a house sitting in their bank accounts.
The problem is finding cheap homeowners insurance. If you don’t take advantage of all the possible discounts available to you, your wallet will weep.
We hope that you’re able to use the tips that you’ve read here today to save money on your policy. For more homeowner’s insurance advice and pointers, visit the Lifestyle section of our blog.
