It is very easy to save money on your home insurance cost if you know how. There are discounts from your insurance company that can be used for a variety of reasons, ranging from what kind of building materials you use, or even how far away you are from a fire or police station. There are a few items you should consider when trying to get the best home insurance rate.
First of all, shop around. By researching and comparing all the different insurance companies to compare rate quotes, you are sure to find the most affordable one for you. Also check with friends and family members for options.
Another way to save on your home insurance is by raising your deductible. By raising your deductible from $250 to $500, you can easily save 12% on your insurance premiums. The higher the deductible the more you can save. Just make sure you can easily access the money if something should happen. Having a high deductible may save you money, but if you can’t pay the deductible when something happens, it is not helping you.
Buying your home and automobile insurance from the same company can also help you keep your insurance rates low. Many companies will offer discounts for multiple policies through their company. You should also consider the consequences when buying a home. A new home has better electrical, plumbing and heating systems than an older home would which can easily give you better discounts when you are insuring it.
It is important to insure the home, and not the land that it sits on. Your home and its contents have a higher risk of fire, theft, storms, and other hazards, but the land isn’t, so it is important that you do not include the value of the land when purchasing homeowner’s insurance.
You can also save on your home insurance cost by upgrading security and adding smoke detectors, deadbolts, or burglar alarms. Before adding any security system, check with your insurance company to see which they recommend and what type will give you the best discount.
If you smoke, you should quit. Not only for health reasons, but smoking accidents account for over 23,000 fires every year. Some insurance companies will offer discounts if no one in the home is a smoker.
Lastly, stay with an insurer. The longer you have kept a policy with a particular insurance company, many times they will offer you special considerations and may offer discounts for every 5 years you are with them.
Photo Credit: Piggy Bank 3 by asterisco