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How to Save on Your Homeowner's Insurance?
Turning to your home insurance policy as a way to save money may seem unconventional to some, but there is an opportunity to reduce your premiums and save considerable money over the long-term. Here are a few tips for reducing the cost of your homeowner's insurance.
Are You Over-insured?
You may have a good relationship with your insurance agent but, truth be told; they are still salespeople. It is ultimately not in their best interest to review all of your policy coverage as a means to eliminating waste. You need to take it upon yourself to review all of the terms of your coverage. You will want to make sure you aren't paying to protect the home against risks you will likely never encounter. Is there a jewelry clause on your policy despite the fact that you don't own any expensive jewelry? Are you covered for earthquakes in a region that doesn't experience any? Eliminating unnecessary coverage should be your first step, but also be wary of removing coverage for something you may not have anticipated. Your home is your single-largest investment and you don't want to have it inadequately protected.
Bundling Policies
People take on insurance policies at different times in their lives and, as a result, there are many people who have their auto, life and home insurance with different agencies. Insurance companies often offer anywhere from 5 to 15% discounts if you maintain multiple plans with them. Look to consolidate all of your plans with a single company and take advantage of any discounts.
Customer Loyalty
If you have been with your insurance agency for a long time, they might offer discounts to long term customers. Sometimes you have to ask for these discounts in case they aren't automatically applied. Make sure you talk to your insurance agent to see if they offer loyalty discounts. You might also inquire about other discounts if, say, you are retired or you're a veteran. It can't hurt to ask.
Maintain Good Credit
Many people are unaware that insurance companies monitor their policy holders' credit. They argue that people with poor credit are a greater credit risk. Maintaining good credit and paying your bills on time can ensure that your insurance rates don't increase due to credit issues.
Reduce Your Home's Risk
There are many steps that homeowners can take to reduce their home's risk. Lack of smoke or carbon monoxide detectors, old wiring, pools, trampolines, owning dangerous pets like a Pit Bull or Rottweiler can increase insurance costs or even limit, and in some cases void, an insurance policy. Read up on what your plan covers and make sure you take all the appropriate steps to lower your home's perceived risk in the eyes of the insurance company.
All or some of these approaches could save you money on your insurance premium payments. When you consider that your homeowner's policy will likely follow you until you cancel or switch policies, even small savings can add up to significant amounts over the extended life of the policy. Make sure you're not overpaying on your homeowner's insurance.
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