$1,173.00 is the amount that the average household pays in policy premiums for their homeowners’ insurance policy. If you’re paying that kind of money year after year and you’re not making any claims, you might be thinking to yourself why you’re having to pay so much.
We get that insurance isn’t something that you ever think you need until you do. Still, though, over $1,000.00 is a lot of money to spend on anything that you’re not really using.
In order to help you get the best of both worlds (keeping your insurance while saving money), our team runs through some tips on how to buy homeowners’ insurance without breaking the bank.
There are a lot of fun ways to save on your policy!
1. Compare Rates
There are many companies out there that offer home insurance. If you’ve ever shopped for car insurance before, you know how much all of those companies’ prices can vary.
We don’t know exactly how one insurer sees you as being a high risk while another insurer sees you as being a low risk but varying opinions in the insurance industry are common and you need to shop around extensively to make sure you don’t end up overpaying for no good reason.
That’s why the very first how to buy homeowners insurance tip that we give to anyone that’s looking to save is to compare rates and to find the best deal with a reputable provider.
2. Bundle and Save
If you already have an auto policy with an insurer, use their online tools to see if they can bundle your auto policy with your homeowner’s insurance policy. While not always the case, most insurers will give you a slight discount if you allow them to insure multiple aspects of your life.
Having trouble bundling through your insurer’s online tools? Just place a phone call and a policy agent will be able to let you know what’s possible.
You can also learn more about bundling by browsing the wide about of literature online written on the topic.
3. Increase Your Deductible
When you make an insurance claim, you pay what’s called a deductible in order for your insurance to kick in. Most policy deductibles are $500.00 and up.
The higher than your deductible is, the cheaper that your month-to-month insurance coverage will be.
So, if you’re not making claims on your insurance at all but you still want that safety net for big problems, up your deductible to $1000.00 or more and you’ll see your monthly bill drop substantially.
4. Lower Your Coverage Limits
Home insurance prices are predicated on how much you stand to lose if you were to lose your house and everything inside of it. Understanding how much you stand to lose and how much money you need to be insured for can be a bit of a guessing game though.
If when you first bought your insurance policy, you overestimated the amount of coverage that you needed, try to assess what your property and belongings are worth again.
The lower you can reasonably make your coverage limits, the less you’ll pay for insurance.
Just know that if your coverage limits are too low and you lose your home to a fire, you won’t have enough money to rebuild.
5. Ask about Special Discounts
Many insurance providers have unadvertised discounts that they offer to certain people.
For example, senior citizens often get special discounts on insurance. So do teachers, police officers, firemen, and other public service workers.
This how to buy homeowners insurance tip really just comes down to picking up the phone and asking what sorts of discounts might be available so don’t hesitate to make that call.
6. Keep Your Credit Score Up
Insurers assume a lot about you based on your credit score. If you’ve got good credit, they’ll assume that you’ll take good care of your home and will be willing to lower your rates. The inverse is true if you have bad credit.
Bottom line – Pay your bills on time. When your credit score goes up, so do your savings.
7. Stay Loyal
The longer that you stay connected with a particular insurance company, the longer that they have to assess what a good customer you are. While not all insurance companies will be proactive in doing this, some will offer you discounts on your policy after a few years of a great business relationship.
If your insurance company doesn’t send you an email outright offering you a discount for being good, don’t get mad at them. After all, they are in the business of making money.
Feel free to be proactive, give them a call, and ask what they can do to lower your premium given how loyal you’ve been over the years.
If your insurance company doesn’t want to work with you, threaten to move your policy to another provider.
Final Thoughts on How to Buy Homeowners Insurance Without Breaking the Bank
How to buy homeowners insurance while spending as little money as possible typically comes down to shopping around, messing with your policy details and asking for discounts. It’s really that simple.
Just be sure that you never push your coverage limits down too low or your deductible too high.
Insurance is there to protect you. If you make your policy’s details so weak that it no longer the safeguards what you need, why have a policy at all?
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