Helpful Tips That Will Help You Save Money On Your House Insurance
Anyone who has ever gotten a home mortgage knows that obtaining an adequate homeowner’s insurance policy is a requirement that lending institutions will require before closing a loan. Depending upon the replacement value of the home and other factors like the age and location of a home, this insurance policy can add quite a bit to the monthly mortgage payment. One of the easiest ways for a family to look to save money can be finding a better insurance rate. Here are some tips that can lead to lower home insurance rates.
1. Shop Around
This tip is probably pretty obvious. Not all insurance companies will offer comparable prices for the same product. Asking for quotes from a number of insurance companies can lead to savings that reach into the hundreds of dollars annually. For really expensive homes, the savings can even cross the $1,000 barrier. It pays to shop around before buying.
2. Get a Higher Deductible
Insurance companies adjust their charges based upon the amount of the deductible. Those homeowners that choose a higher deductible will be able to save money on their insurance. The reason for this savings is related to the share of any damage that an insurance company will have to pay. A higher deductible lowers the risk that an insurer will have to pay out on a claim. Those who can afford a $1,000 or higher deductible will do better than those who choose a lower amount.
3. Bundle Policies
One of the easiest ways to save money on home insurance will also save money on car insurance. Those who get a homeowner’s policy and a vehicle policy from the same insurance company can get a multi-line discount. This incentive is put in place by insurance companies to get all of the business from a consumer. In most instances, it will make sense for the consumer to get these discounts because they will be able to save money.
4. Get a Home Security System
Another way to save money on insurance costs that many people will ignore is a home security system. Some estimates show that insurance companies will offer 10 to 20 percent discounts for any policyholders who install a home security system. These systems can range from the normal alarm that sounds when an intruder attempts to break into a home to more high tech options like a GSM Monitoring system that can track sounds. Not only will these options save money on insurance, they can also make a homeowner sleep a bit better at night because of the lower likelihood of a burglary.
5. Do Not Change Insurers
Some insurance companies will give discounts to long-term customers. The discount can sometimes grow over time. Those who jump from insurance company to insurance company will not get the benefit of this discount.
Insurance on a home can range from the hundreds to the thousands of dollars each year. Because this expense can add so much to a monthly house payment, it is important to use any method possible to reduce costs. Using these tips can seriously cut the cost of insuring a home and save quite a bit of money.
Category: Home Insurance
