Tips to Help You Save on Homeowners Insurance

Purchasing the homeowners insurance that is right for you and your home can be confusing, especially for first-time buyers. By learning the basics on how to get the most for your money, you can save on your homeowners insurance and feel confident you have adequate coverage.

  • Shop around for the best policy. Chat with friends, research companies online and talk to an independent insurance agent about your options, making sure you consider several companies. And don’t forget to check a company’s financial rating with A.M. Best or Standard & Poor’s.
  • Increase your deductible (that is, the amount you pay before your insurance kicks in). By selecting a higher deductible ($500, $750, $1,000 or higher), you can secure lower annual premium payments.
  • Insure your home, not your land. Homeowners policies don’t provide protection for your land, so it’s not a good investment to include your land’s value as part of your dwelling coverage—rather that amount should reflect only the price it would cost to repair or replace your home’s structure.
  • Use the same company for your car & homeowners insurance, taking advantage of discounts that most companies offer their multiple policyholders.
  • Improve home security and safety. If your home has certain types of fire alarms, burglar alarms, locks, or smoke detectors, you may qualify for a reduced rate.
  • Ask about discounts for seniors. Your insurance company may offer you a discount if you are at least 55 years old and retired.
  • Look for group coverage. Many insurance companies offer discounts to groups such as alumni or business associations. Check with your association director or employer to see if they offer a plan.
  • Stay with one insurer. If you keep your coverage with one insurer for several years, the company may offer you a discount as a longtime customer.
  • Compare the limits in your policy to the value of your possessions at least once a year. If you make any major purchases or additions, you want to ensure they will be covered, but you do not want to spend more than is necessary.
  • If you’re thinking about moving and researching homeowners policies, consider the age of homes in which you’re interested. For example, the plumbing, heating and electrical systems of newer homes have lower risks than outdated systems, so that could qualify you for savings. Construction of the home (that is, brick versus wooden frame) can affect your cost as well, depending on your home’s location. Additionally, homeowners’ rates are sometimes lower if you live near your local fire department.

 

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