Save Money on Your Homeowners Insurance
The cost of homeowners or property insurance can vary widely from state to state and is dependent on many factors including the specific location and construction of your home. Conduct some online research and speak to insurance agents so you can make an informed decision. Here are some tips that will help you save money the next time you're faced with purchasing homeowners insurance.
Before You Purchase Your Home
In all likelihood, a newer home will result in lower property insurance premiums than an older home in the same area. Insurance companies are may offer you savings of up to 15% and sometimes more if your house was built in the last few years.
Begin by gathering information.
Speak to as many people as possible including family, friends, insurance companies. Don't stop there. Go online and review the range of prices you'll likely encounter and check out the service and reputation of insurers you're interested in.
Keep your home and auto policies together.
Simplify your insurance and save at the same time. Some property insurance companies also sell auto insurance. If that's the case, you may save up to 15 percent if you also have a car insurance policy with the same insurer.
Increase your policy's deductible.
The deductible is your cost toward a claim, which you'll pay before the insurer begins to pay. Deductibles on homeowners policies typically start at $250 and can increase to more than $1,000. The higher the deductible stated on your policy, the lower your premium will be.
Don't insure your land – just your house.
It's your house that can be damaged in a fire, theft or storm, so that's what must be insured properly. If you insure the land under your house, you'll be giving away money you could have saved. Don't pay a higher premium than is absolutely necessary to insure your home.
Flood-related damage is not covered by your standard homeowners policy.
Avoiding areas that are prone to floods can save you about $400 a year for flood insurance. The closer your house is to firefighters and their equipment, the lower your premium will be.
Install dead bolt locks, smoke detectors and home security system. Property insurance companies will usually provide a 5 percent discount when you upgrade your home's security.
