It is true that your home insurance premiums consumes a good portion of your budget allocation. Home insurance can be expensive, but not nearly as expensive as the unlucky events and risks it protects you from. However, this does not mean you should just pay any premium you are quoted. So, you obviously would like to bargain to bring down your premium as much as possible.
Home insurance premiums keep going up day in day out. Some reasons for this trend include common catastrophes like floods, fire, theft and storms among others. However, the costs of repairs have also increased, which has resulted in home insurance premiums increase. Additionally, older houses tend to need repairs, which can make them more vulnerable to damage. A combination of major disasters, higher repair costs, and older homes has pushed the price of home insurance up.
To help you keep some money in your pocket, the following six tips will help you keep your home insurance premiums low;
Purchase a Home in a Secure Place
If you live in an area that is prone to a particular type of storm damage, find out what sort of improvements may lower your premiums with a discount for disaster-proofing. Storm shutters, reinforced roofs, and modern wiring can reduce the risks.
Learn about discounts you may get for installing alarms or burglar bars to counter the risk of thefts in your home. Sometimes you can even get a discount for installing deadbolt locks.
Combine your Home & Auto
Many insurance companies offer huge discounts when you combine your home & auto policies together with one company. When shopping for a house insurance ‘ spend some extra time to find out how competitive their auto insurance is.
Eliminate the Coverage you don’t really need
A lot of house insurance companies will automatically include coverages in their policy that you might not actually need. Eliminating some of these coverage is a great option for saving some money. For instance, if your residential area is not prone to flooding, consider removing coverage for such.
Increase Your Deductible
A deductible, is a certain amount of money you pay in a loss before your insurance company pays for a claim. The higher you set your deductible, the more money you can save off the premium. Currently, insurance companies recommend a minimum deductible of $1000. Ask your agent how much you would save if you went to, say a $2000 deductible.
Pay in Full
Most insurance companies charge between 2%-5% in service fees to enable you to pay for your home insurance premium in monthly installments. If you can make this option, it can mean a few dollars in your pocket and grant you the peace of mind that your insurance is paid up in full.
Negotiate as many Insurance Companies on their Prices
Shopping around as many providers as possible is the only way to find the best price. Once you are done with the research, it’s time to contact the top 2 to 3 Insurers and see how you can further get the price down. Directly discuss your options and ability to reduce the risk to the insurance company.