7 Tips for Cheap Homeowners Insurance
With the surge in home ownership over the past few years, a person's home has become their largest asset. To protect this asset it is critical that you obtain homeowners insurance to protect you from loss due to natural disasters, liability for accidents on your property, and theft. Here are 7 tips to help you obtain cheap homeowners insurance.
At a minimum, your home owners insurance should cover you for loss against your home, personal belongings and property, and liability. All of these levels of coverage can be adjusted to satisfy your unique situation.
Take the time to really understand the homeowners or mortgage insurance you are buying and what exactly is covered. Be sure to read the exclusions portion so there are no surprises.
Now it’s time to save some money and get some cheap home insurance.
1. Do Your Shopping
If you are like most people, whenever you make a big purchase you shop first. Buying homeowners insurance is no exception. Ask your coworkers and friends for agents they have used and been pleased with. Get online homeowners insurance quote from several companies and compare rates.
2. Check into Higher Deductibles
You can significantly lower your premium by using higher deductibles. On many policies there are different deductibles applied to different forms of loss. Use high deductible on low probability of occurrence events. Put the money you save into a savings account so you can use it if the loss occurs or you just need some rainy day funds. If you do this over the term of your mortgage, you will have a good sum of money to use to payoff the mortgage early.
3. Use Same Company for All Insurance Needs
Try to purchase your home, auto, health care, or any other insurance from the same company. By doing this you could obtain as much as 25% savings on all your insurance.
4. Disaster Proof Your Home
There are ways to reduce risk of loss that can earn you additional discounts. Put storm shutters on your windows, apply flame retardant siding, and reinforce your home against earthquakes. Your insurance agent will give you specific discounts for each of these risk reduction measures.
5. Install Home Security Measures
To get an additional 5% to 20% a year savings consider installing a home security system. This should include smoke detectors, dead bolts, fire sprinkler systems, and burglar alarms with a real-time live monitoring service.
6. Keep Your Credit Rating High
Did you know that your insurance company would check your credit history and adjust your insurance rates accordingly. Insurance companies believe that people with good credit ratings are lower risk.
7. Don't Jump Companies
Most insurance company will give you a discount based on number of years you have been with them. This can be as much as 5% discount after 3 years and 10% discount after 6 years.
Your homeowner insurance should give you peace of mind that you will not have large out-of-pocket expense in the event of a loss. So go online for a cheap homeowners insurance quote and educate yourself on all your options.
