How to Purchase Affordable Home Insurance
Being the owner of a home can be an expensive prospect, even if you try your best to budget and reduce the cost of your utility bills. One of the often-overlooked costs of owning a home is purchasing homeowner’s insurance. However, it is one of the most important things you will need to get after you buy a house.
Homeowner’s insurance helps to protect the physical structure of your home from the cost of damages in addition to covering your personal property. This insurance will also offer legal protection if someone is ever to get injured on your property. Although it may seem expensive, you should never be without homeowner’s insurance coverage.
Fortunately, there are helpful ways to reduce the cost of your policy while still receiving all of the coverage you require. For instance, you can ask about potential discounts, make adjustments to your home to increase safety and more. Keep reading to learn more about finding affordable home insurance that provides the coverage you need.
Get the Coverage Level You Actually Need
For most homeowners, the standard home insurance plan will provide adequate coverage. However, there are a number of additional insurance options that can be sensible to purchase depending on where you are living. If you live in an area that is prone to natural disasters such as floods or earthquakes, it may be wise to purchase an insurance policy that covers the damage your home may receive from those issues.
Typically, coverage for floods or earthquakes is not included in standard insurance plans. Although it might be tempting to cover your home from all potential damage, over-insuring your home is an easy way to spend too much money on coverage you may not actually need. Save some money by removing any coverage that does not apply to your property.
One effective way to cut the cost of your home insurance premiums is to perform a survey of the features in your home and all of your belongings. Try to locate any construction features that may be difficult to replace or are rare, which are typically features that are found in older homes. It may save you money by modifying your policy to specifically insure you for the cost to swap these features for updates ones.
If you do not own any jewelry, silverware or other expensive collectibles, you may be able to save some money by choosing a policy that does not cost extra to provide coverage for those items. Generally, standard home insurance policies will include coverage for up to $2,000 in the event that these types of items are stolen or damaged.
You should also review your policy to verify the details are accurate. This is especially important if structural changes have been made to your home since the start of your coverage or since the last local assessment. For instance, you may be paying more for owning a wood-structure home when your house is made of brick.
Ask About Home Insurance Discounts
One of the simplest ways to save money on your insurance premiums without making any changes to your policy is by getting a discount from your provider. There are certain discounts that are offered by almost every insurance provider, but many companies will also have their own discounts if you are their customer. Therefore, a good option for finding the best money-saving discounts is by shop around and seeing what discounts you are eligible to receive from different companies.
Many insurance companies will offer discounts to customers who purchase a bundle of multiple policies from them including life, auto and home insurance. Some other popular discounts include those for loyal customers, nonsmokers and even for homeowner’s who are married. Customers are encouraged to ask their insurance for any discounts that they may qualify for.
Modify Your Home for Additional Ways to Save Money
Some potential savings on your home insurance will require you to make some modifications around your house before you can qualify. For instance, you may receive discounts if you improve the safety of your home by installing a monitored security system that will alert you in the event of break-ins, fires or gas leaks. Other security improvements such as installing deadbolt locks can also result in savings. Be sure to consult your insurer about any home modifications that can save you money on your home insurance.
Consider Increasing Your Insurance Deductible
When you purchase an insurance policy, your deductible is the money you will be required to pay out-of-pocket before your insurer will cover a claim. Insurance plans with higher deductibles will require you to pay more out-of-pocket before receiving coverage, but these plans usually come at a lower monthly premium. This is because you will be less likely to meet your high deductible by making claims for smaller home repairs. Consider increasing your deductible if you want to save some money on your home insurance costs.
Improve Your Overall Credit Score
For most states, insurers have the ability to look into your credit score to help them determine what rates you will be qualified to receive. Your insurer is likely to look into your credit score when you initially sign up for a policy, when the policy is being reviewed and when you are renewing your coverage. Improving your overall credit score is an effective way to save money on your home insurance.