Learn how to lower homeowners insurance premiums. Discover six ways to lower the cost of your home insurance and still have protection against large claims.
How To Lower Homeowners Insurance Premiums
Did you know you can save money on your home insurance costs and still keep your much-needed coverage? The price you pay for your homeowners insurance can vary by hundreds or even thousands of dollars - depending on which insurance company you buy your policy from.
How to lower homeowners insurance premiums. Here are some things to consider when buying home insurance. Here are some ways to help you save money and minimize the cost of your homeowners insurance premium.
When you file for a claim, the deductible is the amount you are supposed to out of your pocket before your insurance kicks in. If your deductible is a percentage of your property's insured value and not a flat rate, you might want to increase it in order to lower your overall home insurance rate. You might also want to examine the rate differences across the various levels of deductibles, so you can choose the most cost-effective insurance plan.
Cut costs by investigating ways to get a discounted premium. Ask your auto or life insurance company if they offer 'bundled discounts' should you decide on getting your home insurance from them too. If you are a senior citizen or have an excellent credit score, inquire if you are entitled to a discount. You may be a member of a professional association and are entitled to perks in the form of discounted premiums. Typically security systems can offer a nice discount. Research and ask away.
Dogs, Swimming Pools, and Trampolines
Dogs, swimming pools, and trampolines can all lend a fun, easygoing atmosphere in your home. But they can also dramatically increase your insurance rate.
This does not mean foregoing having a dog as part of your household. The emotional benefits of owning a dog can outweigh a potentially expensive premium. Mostly all insurers do not like to insure homes with potentially dangerous dog breeds like pit bulls etc. The good news is that there are dog-friendly homeowners insurance companies out there.
The key is to keep your dog from biting someone. Claims for dog bites are a huge cost for insurers. Proper training and socialization for your pet can prevent dog bites. And don't forget to exercise common sense: be responsible and supervise when friends or relatives come over for a visit and mingle with your dog. When there are kids in your home, instruct them firmly to never tease or startle the dog. For toddlers, it is best to never leave them alone with your dog.
Depending on your insurance policy, injuries resulting from the use of trampolines may or may not be covered. Some home insurance companies cover trampolines as long as a safety net is installed and there is a fence in your yard with a locking gate.
Your swimming pool can increase your insurance rate. If it comes with a slide and a diving board, you can even be denied coverage. Insurance companies liked fences with locked gates to prevent people easy access to your pool. Discuss your options with the insurance company and work out how best you can lower your premium.
How to lower homeowners insurance premiums. It is possible to lower the cost of your home insurance premium by making steps to turn your home into a disaster-resistant abode. Talk to your insurance agent about this. Some insurance companies trim their premiums if storm shutters are added, the roof is reinforced, the electrical wiring system is modernized, and the property is retrofitted against earthquakes.
Your insurer may also look more kindly and lower your premium if you install safety features in your home. Burglar and fire alarms, deadbolts, smoke detectors, surge protectors, and high-tech sprinkler systems can net you a discounted premium.
Claims Free History
Your home insurance is intended to help you recover fast from a major loss. If you file small claims here and there, you are driving up your insurance rates. For minor damages whose repair costs are something you can afford to pay on your own, think twice before making a claim.
Good Credit History
A good credit history can lower your insurance costs. Property insurers are using credit information to price homeowners insurance policies more often. To protect your credit rating, pay your bills on time, don't open credit cards than you need and keep your balances as low. Check your credit report on a regular basis and have any errors corrected right away so that your record remains good.
Stay With The Same Insurance Company
If you've kept your coverage with the same company for several years, you can receive a special discount for being a loyal policyholder. Some home insurers will reduce their premiums by 5% if you stay with them for 3 to 5 years and by as much as 10% if you stay with them for 6 years or longer. But you should still periodically compare your premiums with that of other policies.
How To Lower Homeowners Insurance Premiums - The Bottom Line
We hope this article on how to lower homeowners insurance premiums has been informative. When choosing a homeowners insurance plan, take care not to have excessive coverage for your rebuilding cost. For instance, you don't need to pay to have the land under your home insured from fire, theft, or windstorm. It is a piece of ground and is not at risk from the aforementioned hazards. Insure only the value of the phyiscal structure of your house.