Purchasing homeowners insurance doesn’t have to be extremely expensive, especially if you follow a few helpful steps. We’ve created a straightforward guide to assist with this endeavor.
One of the first steps to take when shopping for homeowners insurance is to conduct a little research. Taking the time to check different venues may help save a considerable amount of money. There are several ways to conduct this type of research, which include analyzing some of the following resources:
- – The National Association of Insurance Commissioners
- – Consumer guides
- – Insurance agents
- – Insurance companies
- – Online insurance quote services
- – Friends
Checking several different areas should provide a range of prices that can be categorized from low to high. Along with price checks, the quality of each service should be analyzed to make sure it meets expectations and requirements if a claim is filed. The National Association of Insurance Commissioners has information regarding complaints filed on individual companies, which can be helpful when making a decision.
Making Changes With a Current Home Insurance Policy
Staying with the same insurance company for many years will usually help provide a discount. Steps that can be taken right now to lower the cost of a premium include:
- – Raising the deductible
- – Combining insurance policies
- – Checking for discounts
Raising the deductible of a current home insurance policy is another way to help save money on home insurance. While the amount of money that’s required to be paid goes up when a loss occurs, raising a deductible amount can help create lower premiums. Changing a deductible amount from $500 to $1000 or even $2500 can add up quickly in savings if the policy is needed for a few years or ever.
Purchasing home insurance and auto insurance from the same company may also be a way to cut the cost of a premium. Making this move requires some analysis to make sure the price for both policies is less expensive than if they came from different companies.
Checking for discounts for individuals over the age of 55 is another useful money for saving money. Often, individuals who are older and retired stay home and have more time to maintain their homes, which might help them qualify for discounts at some insurance companies. Getting a discount of 5 or 10 percent leaves extra money and a budget that can be used for other essentials.
Maintaining Financial Responsibility and Upgrading a Home
Besides looking at changing direct aspects of a home insurance policy, other methods can be used to lower premium costs:
- – Maintaining good credit
- – Improving home security
- – Making a home more disaster resistant
Having a good history with the use of credit can also help reduce the cost of home insurance. Some companies will use the information on a potential customer’s credit card use to price their policy. Paying bills on time and being responsible with credit should help keep a credit score at a high level. Some companies use this as a determining factor when they are pricing a policy, which is why it’s also essential to make sure there aren’t any errors being reported on credit reports that might lower a credit score.
Discounts may also be given when security components are installed, such as deadbolt locks, a burglar alarm or smoke detector. Various companies have been known to reduce home insurance premiums by as much as 20 percent when a sophisticated protection system is installed, which might include a sprinkler and alarm system. These types of systems can be expensive, so it’s crucial to check the discount being offered before a person decides to install a unit just based on getting a discount.
Taking steps to make a home more resistant to wind storms or other natural occurrences may help as well. Here is a list of possible solutions:
- – Reinforcing roofing materials
- – Adding storm shutters
- – Retrofitting older homes to withstand earthquakes
- – Upgrading electrical, plumbing or heating systems
Following these three steps provides a thorough way to research and possibly lower the price of homeowners insurance. Implementing one or more ideas should help save money.