9 tips to help you reduce your home insurance payments
Your home insurance is up for renewal again, has the price gone up from last year? If you own your home, that’s often the case as the cost to rebuild your home is always going up. Plus, your insurance provider typically increases your policy limits to cover new possessions you acquired during the year. As a result, your insurance premium will also increase. Here are 9 tips you can use to reduce your home insurance payments:
1. Increase your deductible
Most home insurance policies have a standard deductible of $500. If you are willing to take a risk, you can increase your deductible to $1000, $2500 or even higher. You could see substantial savings!
2. Don’t claim for small losses
If you have a $500 deductible, and lose a $600 ring, is it worth putting in a claim for $100? If you have a discount for being claims free, you will lose it, and if you have more than one claim, a surcharge could be applied to your policy.
3. Install a monitored alarm
Not only will this give you some extra peace of mind, but it could very likely reduce your insurance premium because you’ve reduced the chances of experiencing a break-in.
4. Recommend friends
If you’re happy with your insurance company, spread the word to your friends and family! Some insurance companies have referral programs, which could help you save money.
5. Keep your home in good shape
If you repair those dangerous steps, or replace that rotting deck, you’ll reduce the chance that someone will be injured on your property. Fewer claims mean lower rates!
6. Update your home
Is that hot water tank beginning to rust and show signs of wear? Keeping these things updated can prevent a big loss, and may just result in a discounted rate from your insurance company.
7. Don’t over-insure your home
Insure it for the amount it would cost to rebuild, not what you paid for it. When you bought your home, you paid the market price for the house and the land. Depending on when you bought, and where you live, that could be significantly higher than the cost to rebuild. If you’re insuring for more, you’re paying too much.
8. Don’t over-insure your property
Complete a household inventory checklist. If you’ve only got $60,000 in personal property, you shouldn’t be paying for more. Some home insurance policies insist you insure your personal property for an unrealistic amount based on the value of your home!
9. Eliminate unnecessary coverages
Don’t have a garage or a fur coat? Why are you paying to insure them? Most policies include coverage for these things, whether or not you actually have them. Find a company who will let you remove coverage for things you don’t have!
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