5 Ways to Save on Homeowner’s Insurance
If you’re like most middle-income Americans, your home is your largest single investment. Protect it with the proper insurance. Here are five ways to save on homeowner’s insurance.
1. Shop around for a reputable insurance agency.
Insurance agencies represent many different insurance companies and can often find the best coverage for your money. Keep in mind, the lowest cost is not necessarily the best buy when you consider insurance coverage and service. To find a reputable agency, check out your State Insurance Department, consumer guides, and even family and friends.
2. Increase your deductible.
If you increase your deductible–the amount you’d pay towards a loss before the insurance company pays–you can save a substantial amount in premiums. If you increase your deductible from $250 to $500, for example, you could save up to 10 percent on your annual premium. Ask your insurance agent how much you can save by simply increasing your deductible.
3. Buy your home and auto policies from the same insurer.
You may qualify for additional savings if you buy your home and auto policies from the same insurance company. Some companies will take up to 5 percent off your premium if you buy more than one policy, for example, both your auto and a homeowner’s policy.
4. Inquire about discounts.
Some insurance companies offer discounts for security products you install in your home. You may get a 5 percent discount for a smoke detector, dead-bolt locks or a fire extinguisher. In addition, some companies offer discounts of up to 15 or 20 percent for a fire and burglar alarm that alerts police or a monitoring facility. Check with your insurance agent for details on saving money with discounts on your homeowner’s insurance.
5. Review your policy annually.
Make sure your policy is up-to-date. If you’ve increased your home’s value, you may need more coverage. Confirm that your policy has an inflation guard clause This will guarantee that the value of your insurance policy will keep up with increases of local building costs. Finally, make sure that your household inventory is also up-to-date. If you ever have to report a loss, the household inventory can help you verify the value of your lost possessions.
You can’t prevent disasters from destroying your home, but you can prevent them from financially destroying you. Securing the best insurance coverage will protect your largest single investment.