How to Save Money on Home Owners Insurance: 10 Tips
It is an exciting day when you first buy your own home! Among the responsibilities you now have, however, is that of purchasing home owners insurance. How can you get the lowest possible rates? By thinking like an insurer. How can you reduce the risk of insuring your home?
1. How safe is your home? Is it located in a high-crime neighborhood? If so, make sure to install deadbolt locks at every entryway. Also, having a burglar alarm, security cameras, motion sensor lights, and other security measures installed can help you get a lower quote.
2. What about fire protection? Do you keep the batteries in your smoke alarms fresh? Do you have a fire extinguisher handy and know how to use it? Are you and your family non-smokers? Are your heating and electrical systems in good shape? These measures can help reduce your home owners insurance premiums.
3. If you already own your home, there isn't much you can do about its age, but if you are shopping for a home, remember that newer homes tend to be cheaper to insure. This is because they are typically made with safer materials due to modern building codes. Older homes are more of a risk to the insurance company.
4. Don't over-insure your home. You may be thinking in terms of how much your home would sell for, but remember that part of that amount would be for the lot and any outbuildings. Figure out about how much it would take to rebuild the house and insure for that amount.
5. It's usually a good idea to get your home owners insurance from the same company you use for car insurance. Check to make sure.
6. Can you do anything to your home that would make it more resistant to the sort of disasters that take place in your area? If you're shopping for a home, does the home you like have disaster-ready features? For instance, a steep slope on the roof can help you get lower rates in areas that experience heavy snows. Some other improvements you can make are adding storm shutters and reinforcing the roof.
7. While you may get a good deal in return for switching to a new company, it is usually best to stay with the home owners insurance company you have used in the past. Many companies offer discounts to customers who have been with them a long time. This is especially true if you have been claim-free with that company.
8. Periodically review your coverage. Perhaps you have sold something valuable since your last insurance review. Or you may have added on a room and your coverage does not reflect your home's new value. If your company offers an annual face-to-face meeting with the agent to go over your coverage, take advantage of the service and go to the meeting.
9. Ask about discounts your agent may not think of. For instance, some companies offer better home owners insurance rates to retired people because they are home more and will spot fires sooner than people who are at work. Retirees also have more time to maintain their homes, making them a safer insurance risk. Also ask about a reduced rate if there are no smokers in the home. If your agent doesn't mention it, bring up things like security lights, dead-bolt locks, and any improvements that have been made to the heating, plumbing, and electrical systems.
10. Keep your credit rating in good shape. A poor credit rating can cause you to have higher home owners insurance.
