In this downturn that seems to have been going on way past the 9th inning, saving cash is the name of the game. One way to accomplish this is through most people’s biggest purchase, homeowners insurance. Below are the top 10 ways you can save a few dollars on homeowners insurance.
1. Raise your deductible. Like most insurance, raising the amount of money that you would need to pay towards a claim before your insurer picks up the tab is a sure way of saving money. Raising your deductible from $250 to $1000 will save you up to 25%. Raising it to $5000 will save you up to 40%.
2. Consolidate your policies. This is another sure way to save, most companies offer some sort of incentive if you bundle your policies under one insurer. Purchasing your homeowners and your auto insurance policies from the same company can give you up to 30% discount on your premium, plus you’ll only have one company to deal with.
3. Add Safety and Security Devices. If you install deterrents the savings will come, installing burglar alarms, smoke detectors, dead-bolt locks, and window locks can save you up to 15% on your yearly premium. If you implement a security system that can save you in upwards of %20.
4. Only insure your home. Don’t use the appraised value of your home when deciding how much coverage to buy; this method includes the price of the land. It is best practice to insure your home, not the land it sits on. (Note: Standard policies do not cover floods, so it is highly recommended to purchase flood insurance if you live in a flood zone).
5. Check your credit. Many companies are now basing your insurance rate on your credit rating. If you are one of the millions that have poor credit, find a company that does not run credit checks in order to give an insurance quote.
6. Quit smoking. Smoking is a major cause of home fires, so most insurers will give you a discount if no one in your home smokes.
7. Get a senior discount. Most companies offer some sort of discount to seniors who are 55 years and older and retried. It is in your best interest to find out which companies offer the highest discounts for senior citizens.
8. Stay with one company. Many insurers will give there loyal customers a %5 discounts if you stay with them for a period of 3 to 5 years, and 10& discount if you stay with them for 10years.
9. Pay premiums electronically. You can save up to $5 a month by paying your monthly premium by electronic bill pay, automatic deduction, or by credit card.
10. Compare Rates. Probably one of the most overlooked elements when shopping for a product or services I comparing prices and insurance rates are no different. Insurance rates can vary by hundreds and even thousands of dollars from one insurer to the next, so comparing rates is the best way to save you on your homeowners insurance.