Your home cost a bundle; your home insurance shouldn’t! Owning a home means watching your biggest investment grow. Spending money on upgrades and insurance are necessary to maintain your investment’s value. At the same time, you should be able to upgrade your home without having to worry about insurance costs.
Proven Ways to Cut Home Insurace Costs
Here are five proven ways to cut your home insurance costs and keep a few extra dollars in your pocket:
- Raise your deductible — Raising your deductible can save you big, sometimes as much as 25%! But proceed with caution. Raising the deductible means you agree to accept more of the financial responsibility for a claim. For example, raising the deductible from $250 to $1,000 can save you hundreds of dollars a year, but make sure you have the ability to pay $1,000 in the event of a claim. If you cannot afford the higher deductible, you should not choose this option.
- Additions add up! — Additions to your home that will protect it from damage can offer valuable savings on your insurance. Hurricane shutters, upgrades in piping, electrical systems and your roof are examples of possible money-savers. Ask your insurance company what discounts are available for your home improvements.
- Beat burglars — Adding an alarm or security system can save a significant amount. Ask your insurance company for recommendations on systems that are affordable and effective. Also ask how much of a discount is available before getting a security system installed!
- Fight fire — Fire has destroyed homes for centuries. Luckily homeowners today are better equipped than ever to beat back flames. A great way to save money (and for that matter your home!) is by installing and frequently testing smoke alarms or a fire-sprinkler system. Also, be careful with candles. They’re one of the leading causes of fire – taking simple steps to watch them and extinguish them properly can save you from a fire claim down the road.
- Fight Water – Most home claims are water claims, many of which are caused by ruptured appliance hoses. Take a few minutes every two to three years to buy new plastic hoses ( or better yet – flexible metal hoses which will never rupture) to prevent a water claim.
- Consider switching coverage to one of your other companies — If you have other types of insurance (e.g. auto, life, boat, etc.) through another insurance company, it is worth giving them an opportunity to look at your home insurance. Multiple-policy discounts are one of the best and easiest ways to save money.
Savings Tips For Home Shoppers
If you are thinking about buying a new home, there are factors to keep in mind that will have an effect on your insurance premium. Examples include:
- Age of the home
- Cost to build in the area or local building cost
- Proximity to emergency services (i.e. a fire station)
- Geographic location (i.e. flood zone, etc.)
- Crime rate in the area
- Your Credit Score
- Previous Claims on the property
Asking questions about these factors before you decide to buy a house can help you save money on home insurance in the long run.