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Ten ways to lower home insurance costs

It’s better to be safe than sorry and so, when it comes to home insurance, this translates into “it’s better to pay a little for a while, than wait for something to happen and waste a ton of money at once”.

At the same time, there are several things homeowners may do to reduce the cost of their home insurance, without it being detrimental to the level and reliability of the insurance coverage. These little adjustment tricks and home improvements should allow you to save quite a considerable amount of money in the long run.

WAYS TO LOWER HOME INSURANCE

1. Don’t pay for something you don’t need. For instance, if your house doesn’t really feature any sophisticated and valuable artwork or/and jewellery, you should cross them off the list of items under protection and save some money. In addition, you can review the cost of your expensive technology pieces (due to the fact that they lose their value over time) and lower the insurance cost that way. It’s important to remember to go over those provisions every two-three years to exclude the excessive insurance payments for the items that decreased in cost or the items you no longer own.

2. If you’ve had the same insurance company for a while, don’t hesitate to renegotiate the cost and ask for a minor loyalty discount. Normally, most companies have those available for their permanent clients.

3. According to the statistics, floods are among the top three reasons for insurance claims. If your house is located in a high flood-risk area, find a general contractor and conduct flood protection home improvements to minimise the flooding damages and to lower your flooding insurance premium. If your local area is prone to flooding, you need to be aware of the fact that most standard home insurance policies don’t cover water damage, thus you need to opt for a separate flooding policy if you haven’t already.

4. Install smoke and CO (carbon monoxide) detection alarms to improve your home safety. You can use this factor as an additional accident precaution to convince insurance agents to lower your monthly policy payments.

5. Look for retirement discounts. Most companies provide special insurance policies for the retired. And, if you’re 55 or older, you should make full use of them.

6. Make your house less prone to intrusion. Cooperate with a reliable security installer to set up an elaborate security system in your home and backyard, and lower the risks of intruders breaking in. The security measures will move your house from the “high risk of burglary” zone and may serve as a persuasive reason for an insurance cost reduction. Some companies even encourage their clients to upgrade their home security and offer up to 15% insurance rate discounts. The only thing is that prior to making your security system choice, you need to talk to the representative of your insurance company to figure out which home security measures will guarantee the cost reduction.

7. If you haven’t made any insurance payment claims during an extended period of time, your company may consider you a low-risk client. Thus, it may accept your application for an insurance premium reduction.

8. If you’re able to do so, increase your deductible (the sum you agree to pay out of your own pocket in addition to the insurance claim to cover the damage). However, you should only do this if you know that you’re able to bear such expenses, especially if something bad happens.

9. Maintain your house and keep it in a great condition. There are many factors that determine the general condition of your home and serve as insurance cost boosters, such as leaking roofs, water pipes lacking winter insulation, old water heaters, windows and doors without storm protection, big tree branches hanging above the house, and old fireplaces and chimneys. Try to eliminate them and apply for an insurance cost review.

10. Stick to the same company when buying your home and car insurance policies and try to get them at the same time, to receive a discount most companies offer for a double purchase. Do your research to find the best deal, but make sure to base your choice primarily on the companies’ respectability and customer reviews.

Source: My Realty Times