13 Time-Tested Home Insurance Savings TipsIf you're at all serious about enjoying superior but affordable home insurance, read and apply the following time-tested savings tips...
1. Do not insure your house along with the land it is standing on as this is more expensive but very unnecessary. A good number of people pay much more than they should on home insurance on account of this mistake. Insuring your home for the purchased price without deducting the land's worth is an expensive error.
If you made this mistake quickly call your agent and check through your coverage. Lower your coverage to the worth of your home and its contents minus the worth of the land.
This implies that you will pay far less on home insurance. Since insurance is for valuables that can't afford to lose, insuring the land which can neither get lost nor damaged isn't a smart move.
2. What you pay as premium is affected by your credit rating. The poorer your credit rating, the higher the premiums you will pay. A bad credit rating suggests that you've not been paying your bills promptly. This is a behavior that most insurance carriers believe will be exhibited in the way you treat your premiums. This marks you out as a bigger risk and so attracts a higher rate.
So do all within your power to pay all your bills in a timely manner. It makes it easier for you to get lower rates among other things.
3. Making your premium payments once every year will save you much when compared to monthly payments. A major reason for this is the cost an insurance company incurs for posting you 12 bills instead of just one yearly.
The cost increases if you include the fact that they pay transaction charges for processing each check you send them monthly. Twelve checks mean 12 transactions which mean 12 separate transaction charges. And as with everything else, it is you the customer or insured who bears that cost.
Therefore opt for annual payments instead if you want to make savings this way. The actual amount you could save may differ but expect to save up to a month's premium worth with some insurers if you settle for this option.
4. A fire-safe home exterior will help lower your premiums. Do you have things that could easily help combustion close to your house? They'll make you pay more. Bushes near your home should be cut and maintained at not less than 10 feet from your structure. This is because how fire-safe a house is goes a long way in shaping what it will cost to insure that home.
5. You will also enjoy a discount if you have motion-sensitive lighting for your home's exterior. Burglars will avoid any place where their movement will be easily noticed. And motion-sensitive lighting does this precisely. Your rate will be reduced you'd have lowered your home's risk of burglary through such lighting.
6. Do ensure that each door that leads outside has dead-bolt locks. It's more difficult for thieves to operate in homes that have such locks. And as you know, the less the risk of burglary in a house, the cheaper rates it will get.
7. Window locks on all windows will save you a little since they reduce your home's risk of burglary. You'll save even a lot more if you go one step more to get burglary-proof bars fixed on all of them. If you're not one of those people who feel so uncomfortable with such, they'll get you reasonable discounts. If you have nothing against this quickly fix them in your home and get more affordable rates.
8. Some security and fire systems are monitored round the clock. Not only will you enjoy a considerable discount, you will also feel safer once you remember that your house is constantly monitored. This can reduce your rate by more than 25% depending on your insurance provider.
9. Smoke and fire detectors will go a long way in lowering your home's fire risk. You will get cheaper premiums especially if you've fixed the right numbers for your size and type of home. If you have them, always remember to change their batteries twice yearly.
Detectors mean fires are quickly spotted and put out before much damage is done. Don't forget that whatever lowers the possibility of a fire in your house brings down your rate.
10. Do your best to place fire extinguishers at important points in your home. Your kitchen is one crucial point to have one or more working fire extinguishers. And make sure it's such that is adequate for the kitchen in question.
And, do NOT forget that you must keep them within easy reach. This will help reduce your home insurance rates.
11. Settle for a higher deductible when applying for a home insurance policy if you want to attract more affordable rates. For those who already own a home insurance policy that offers them enough value, you'll lower your rates by choosing to pay a higher deductible.
Bear in mind, though, that you'll have to provide this amount if you file a claim.
You can shave off as much as 25% from your home insurance premium if you increase your deductible from $500 to $1000. Choosing a high deductible will reduce your home insurance rates -- Every time. But before you choose the highest deductible there is, can you really produce it with conveniently if you ever make a claim?
Opt for the highest deductible allowed if it's within easy reach.
12. You'll get cheap home insurance rates if you get all your policies from the same insurer. This is known as a multi-policy discount and is given by all insurance companies. Even though you'll receive discounts for purchasing multiple policies from the same insurer, you may make more by purchasing each of your policy from different insurers.
Let me make this easier to understand...
Let us say that you have a total of four insurance policies: Life, health, auto and home. Keeping this many policies with any insurance carrier is sure to attract a huge discount. But let us see when that won't be the best route...
I've made up the following quotes just for explanation...
Life insurance: $2,590
Health insurance: $2,200
Auto insurance: $3,500
Life insurance: $3,100
Health insurance: $2,400
Auto insurance: $2,500
Home insurance: $2,400
Life insurance: $2,900
Health insurance: $1,900
Auto insurance: $2,800
Home insurance: $2,700
Life insurance: $2,100
Health insurance: $2,300
Auto insurance: $2,750
Home insurance: $2,600
If, for instance, you purchase all your policies from insurer A, your total insurance costs would be $10390. With a multi-policy discount of 10% your costs will drop to $9,351. This is quite big -- Knowing that you'll save over $1,000.
Despite the fact that the savings made with a multi-policy discount is really big, let's see what would've been the case if you chose to purchase from different companies who offered you the best price for each policy...
Here are the best quotes from different insurers for the different policies: $2,100 from Insurer A; $2,500 from insurer B; $1,900 from insurer C and $2,100 from insurer C. This gives a total of $8,600 in spite of the fact that you were not given any multi-policy discount.
This is $751 lower than what you'll get if you settle for a multi-policy discount.
So take your time to discover which pays you better.
13. Take your time to obtain and compare as many home insurance quotes from as many quotes sites as possible. The wider the range of quotes you get, the more you'll save because you will be able to see the cheapest quotes available for your profile.
Start getting and comparing quotes. The box below is a good place to start. It's free and will take you just a few minutes...