Homeowners-Insurance-7-ways-to-cut-costs

The price you pay for your homeowners insurance can vary greatly, depending on a number of factors. These include which company you choose to insure you, the extent of the coverage you elect, the discounts available, your credit history and much more.

Like most other homeowners, you’d like to know that your home is covered by a high-quality insurance policy for which you’re being charged a reasonable premium rate. Having this is possible if you’ll follow these important tips on ways to effectively cut your coverage costs.

Seven Ways to Lower Your Home Insurance Rates

Consider these seven tips for cutting your homeowners insurance costs:

  1. Experts agree that the number one rule to follow when buying any kind of insurance is to shop around. You can ask friends or family about their insurance, get recommendations from your state insurance department or consult your Yellow Pages. An easy, effective way is to consult with a broker with access to multiple quality companies and willing to do the comparison shopping for you, saving you both time and trouble. The broker can then present you with multiple options from which to choose.
  2. If you already have insurance you’re happy with, one quick, easy way to lower your cost is to simply raise your deductible. According to the III (Insurance Information Institute), raising your deductible from $500 to $1000 could shave as much as 25% off your premium cost.
  3. You can lower your home insurance cost and improve the safety and security of your home at the same time by adding deadbolt locks and actively monitored fire and burglar alarms. Even more may be saved by installing an automatic fire sprinkler system.
  4. Several discounts may be offered by your insurer, but you may need to ask. Discounts are often available for bundling multiple policies, having a no-smokers homes, opting for paperless billing, paying through auto bank payments or single annual payment and more.
  5. Consider getting rid of high-risk items –- what your insurer considers “an attractive nuisance” –- such as unfenced swimming pools, trampolines and tree houses. These items can raise your liability profile and, therefore, your policy cost.
  6. Home additions such as impact-resistant roofing and/or storm shutters may provide insurance premium discounts.
  7. Don’t insure your home for its sale price or current market value, but only for the cost of rebuilding it, which should be lower. Disregard the value of the property under your home.