The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. You may not have to pay the full price for your home insurance as there are usually lots of discounts you may be eligible for, including some very basic ones, and all you have to do is ask. Here’s a look at simple money-savers you may not know about:
#1. Use the same insurance company for multiple policies
Insurance companies want your business and are willing to reward you for bundling multiple policies. Don’t hesitate to ask your insurance company about special rates if you use them for your car, home, life, and content insurance.
Increasingly, insurance companies are throwing life insurance into the mix, which means you may be able to save even more if you have your homeowners, auto and life policies under one carrier. It’s generally a good idea to always get a combined home and content insurance policy.
#2. Boost your deductibles
Depending on the level of risk you’re able to handle, you can save a bundle off your home insurance premiums simply by going with a high-deductible policy. Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy.
The higher your deductibles, the more money you can save on your premiums. That means when you do make a claim, your costs will be higher; but for most people, a claim on a home and contents is quite rare.
Remember, if you live in a disaster-prone area, your insurance policy may have separate deductibles for certain kinds of damage.
#3. Maintain a good credit rating
Establishing a solid credit history can help cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. To protect your credit score: pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit records on a regular basis and have any errors corrected promptly so that your records remains accurate.
#4. Improve your home security
Many people know that fire alarms, carbon monoxide sensors and burglary systems help to cut home insurance premiums. The discounts can be even greater with today’s more advanced monitoring systems that report to a central location and alert first-responders.
These systems aren’t cheap and not every system will qualify for a discount. Before you buy such a system, find out which kind your insurer recommends, how much the device would cost and how much you’d save on premiums. Insurers offer the discount because the risks are minimized if your home is being monitored 24 hours a day.