Every homeowner needs to hold home insurance on their residence. Homeowners insurance covers your private household in the event of a loss or damage to your home assets. Just like with most insurances, there are ways to save and get the best deal. Who wouldn’t want to find cheap home insurance? Below are a few tips that can ensure that you get the most bang for your buck.
Discounts and Incentives
Discounts and incentives vary state by state and insurance company by insurance company. But for the most part, you are able to find characteristics of your home that may decrease your bill. For example, a big one is energy efficiency. If you have energy efficient windows, appliances, heat pump or insulation you may be able to get a discount on your policy. Solar power roofs are often a big discount as well.
An insurance company may offer deals for customers who hold multiple policies with the same company. For example, if you have your home, auto, and business insurance with the same company. You may also be able to get a discount if you have a claims free history. To insurance companies, if you haven’t had a claim recently than you are likely to continue that in the future. They may offer discounts if you have a security system to keep your house safe or other items to them lessen the risk of claims. Automatic Payment is also an option that offers discounts with most companies because it allows them to pull your premium directly. These are just a few examples of potential discount opportunities, make sure to ask your insurance representative.
Coverage
Every insurance company offers different plans and coverage options. Most home insurance covers five basic areas. Dwelling coverage is coverage available to cover your actual house, your dwelling. Other property insurance covers structures on your property that aren’t attached to your home. Other property includes a detached garage, a shed, or a fence. Personal property coverage is the coverage for your actual property inside of your home. Liability Coverage is coverage that protects you and your family in the event a visitor is harmed in your home or property. This would be helpful in the event they try to sue you. Additional Living Expenses is what covers you in case your home in uninhabitable and you need to live elsewhere. It is important to make sure you look at the policy you hold and understand if what you are paying for is necessary. It is also important to understand what isn’t covered (what you would be responsible for in the event of an incident).
Deductible
The deductible is what you have to pay for repairs if your insurance company approves your claim. It’s your share of the repair cost. The higher the deductible, the lower the insurance premiums. If you have a $500 deductible, you’re going to pay more on your premiums than if you have a $2,000 deductible. This is something you need to discuss with your family to see what would best meet your needs. The average homeowner makes an insurance claim once every nine years. If you raise your deductible on your homeowners’ insurance by $1,000, you only need to save about $120 a year in your premiums in order to create a net savings on average – and, likely, you’ll save a lot more than that.
In short, there are many ways to save on homeowners insurance. Be sure to get into all of the areas detailed above to make sure you are getting the best deal for you and your family possible.
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