Getting a home insurance policy is a necessary expense. It protects you against unforeseen circumstances and is a saving grace if disaster strikes.
However, that doesn’t mean you should be paying more for it than necessary. Here are five tips to help you save money on homeowners insurance.
1 – Shop Around
First, be sure to compare offers from multiple providers carefully.
Shopping for insurance is nobody’s favorite activity. But it pays off, in the long run, to invest the time and effort to compare policies.
Check the fine print on how premiums and deductibles are calculated and which kind of damage is covered. Also, be sure to look at online reviews to get a sense of what different providers’ customer service is like.
2 – Get Multiple Policies From the Same Insurer
If you’re happy with your car insurance provider, for instance, check out their home insurance offer. Staying loyal to the same insurer can often get you juicy discounts and other bonuses. However, don’t get complacent. Especially if you’ve been with the same insurer forever, regularly check if other providers offer better policies.
3 – Regularly Adjust Your Premium to the Value of Your Home and Its Contents
When comparing policies, be clear about what you need to insure and for which value. For example, the rebuilding costs of your house are not the same as its real estate value. That’s because the land it is built on retains its value, no matter what happens to your home and possessions.
Similarly, if you buy or sell expensive possessions–whether it’s antique furniture or luxurious jewelry–make sure to update your policy limits accordingly.
4 – Check for Modernization and Home Security Discounts
Some insurers provide discounts on your policy if you take certain steps to prevent damage from happening in the first place. Modernizing systems such as plumbing and heating, disaster-proofing your house, or installing home security systems may all help you save money every month.
The best way to figure out these discounts is to ask your insurance professional. Sometimes, they come with conditions – such as being past a certain age or being retired.
5 – Look Out for Group Coverage
If your employer offers a group insurance program, find out if homeowners policies are part of the package. This is a fantastic and often underappreciated way of saving on insurance. Even if your employer doesn’t offer any such program, there are other sources. Business groups, professional associations, and even alumni clubs sometimes offer access to insurance packages at discounts.
Homeowners insurance is essential to have. But you can reduce your expenses. Shop around for the best offer and take discounts and group coverage into account. Stay loyal to the same provider if you’re happy with their services. That way, you’ll be able to fully protect your home while minimizing your monthly charge.