Purchasing insurance for your home offers protection against common risks and concerns. The challenge is finding the right balance between cost and coverage that fits your budget and needs. Fortunately, you have options to save on your policy without sacrificing the coverage you need for your peace of mind. Here are five easy ways to start saving on your coverage.
#1. Pay Your Premiums Annually
When you purchase an insurance policy for your home, consider paying for six months or one year rather than paying on a month-to-month basis. Since insurance providers add a processing fee to each payment, you can save money by making fewer payments on your policy.
Discuss your options with your insurance provider before making a payment. If an insurance provider allows you to pay annually or bi-annually, making fewer payments can help you save on your overall costs and expenses.
#2. Increase Your Deductible
The deductible is the amount you pay before your insurance policy covers an expense. It may impact your monthly and yearly costs because a lower deductible means you have fewer out-of-pocket costs.
Increasing your deductible can often reduce the cost of your premium. Even a small change, such as increasing the deductible from $500 to $1,000, may significantly lower your monthly and yearly costs. In some cases, you may save as much as 25% or more by making adjustments to the deductible you pay when making a claim on your home.
#3. Ask About Discounts
Discounts can vary significantly between insurance providers and policies. Ask your insurance provider if there are any ways to get additional discounts on your homeowners coverage.
In many cases, you may be able to save by adding to the security of your home or by improving the safety of the property. For example, put in a security system or purchase a fire alarm for most of the rooms and hallways in the house. By adding to the safety and security of your home, you reduce the risk of filing a large claim. It allows you to catch problems at an early stage and limit damage to the property. Insurance providers may offer discounts for the small adjustments to your lifestyle.
You may also qualify for certain discounts that relate to your specific situation. For example, some insurance providers may offer discounts to members of the military. Some policies may also offer discounts if you do not make claims on the house or stay with the company for a certain amount of time. Find out if the insurance policy or the insurance provider offer discounts that may apply to your situation.
#4. Make Improvements to Your Home
Older homes are particular challenges for homeowners and bring added risks. When you have an older house, you may have a higher risk of fires or other complications due to faulty or old wiring. You may also have a higher risk of problems related to the safety of your property or the standards used to build the house.
If you’ve been wanting to make updates to your home, don’t just go for cosmetic changes. Invest in updates that will limit your risks or will improve the safety of your home. For example, put in new wiring to limit the risk of a fire. Depending on the age of your home, updating your wiring may qualify you for a credit.
Evaluate the risks in your specific area and take measures to protect your home against the risks by renovating and improving the property. Talk to your insurance provider, as well; some providers may reduce the cost of your insurance for the improvements and changes.
#5. Evaluate Your Coverage Regularly
Be sure to look into your coverage and evaluate your policy on a regular basis. You may not need the same coverage each year due to changes in your home, family, and lifestyle. For example, if you sell expensive jewelry and no longer need to cover the item in your insurance policy, then removing the coverage for the specific high-cost item may help reduce the cost of your policy.
On the other hand, you may notice that you need more coverage due to purchases, renovations or changes to your property.
Generally, you want to evaluate your coverage annually or bi-annually to ensure that it still applies to your current needs. Always evaluate the policy before renewing your coverage, particularly if significant changes occur in your life. Whether you have changes related to your family, lifestyle or the personal property you keep in the house, your coverage should reflect your current situation and may need adjustments to maintain a reasonable rate. Cut back on the coverage you do not need when you evaluate your policy.
Homeowners insurance is an important tool that helps protect your home, belongings, and your family. Luckily, you can get the coverage you need without overpaying for it. Talk to your insurance provider to uncover some more ways you can save money on your homeowners insurance policy without having to sacrifice coverage.