If you’re taking out a mortgage in order to purchase a house, then odds are you’ll be required to purchase homeowner’s insurance. However, even if you aren’t, you should still strongly consider purchasing a homeowner’s insurance policy. Homeowner’s insurance will help provide financial protection in case your home or anything in your home is damaged or stolen. The costs of homeowner’s insurance depend on the value of your property, the location of your home, any additional insurance features you wish to pay for (such as flood insurance or earthquake insurance) and more. This can add up to a pretty penny once it’s all said and done. Although it may seem like the cost of homeowner’s insurance can only go up, there are a few ways that you can actually lower your premiums. The following are six different ways that you may be able to cut down on the cost of your homeowner’s insurance rates:
1. Raise your deductible – The deductible is the amount of money that you have to pay out of pocket before your insurance will kick in. The higher you set your deductible at, the less your monthly rate will cost. However, it’s a good idea to have the amount of your deductible saved up if you decide to raise it. Otherwise you might find yourself in a tough situation if anything were to happen to your home and you don’t have enough money to cover your deductible.
2. Improve fire safety features – The more safety precautions you take against the possibility of fire, the more it can help to lower your monthly premiums. Some of the things that you can do include installing both smoke alarms and carbon monoxide detectors, making sure that there are several fire extinguishers that are easily accessible throughout the house, installing a new sprinkler system and more.
3. Improve natural disaster resistance – You may be able to save on your premiums by improving your home’s resistance to potential natural disasters, such as by reinforcing your roof, adding storm shutters or making sure that your home is built off of a flood plain.
4. Improve the security of your home – If your home is less of a risk for burglary, you may be granted a discount on your homeowner’s insurance. Additional security features such as security cameras, a gate around your property, a rail on your steps, deadbolts and more will improve your chances of receiving a discount.
5. Use the same insurance company for multiple policies – Many insurance companies will offer a discount on your insurance premiums if you purchase your homeowner’s insurance from them as well as your car insurance. The more policies you buy from a single company, the more willing they’ll be to give you a discount.
6. Stay with a single insurance company – Insurance companies will often reward loyal customers. This means that if you’ve been a policyholder with the same company for over five or ten years, they’ll often give you a discount on your premiums.
Use these six tips to help lower the costs of your homeowner’s insurance premiums.
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