Homeowners insurance rates vary by hundreds of dollars from
company to company. Fortunately the Internet has made comparing
multiple homeowners quotes as easy and non-committing as finding
car insurance. As you review your homeowners insurance and compare
quotes, use the five following tips fully take advantage of
your potential savings.
1. Raise Your Homeowners Deductible: Save up to 25%
The lowest hanging fruit for homeowners insurance savings may
be to increase your deductible. According to the Insurance Information
Institute (III), if you can afford to raise your deductible
to $1,000 from $500, you may save as much as 25% on your annual
premium. Remember, homeowners insurance is not intended for
small fix-it claims, therefore, the benefits of a lower deductible
can be quickly dissolved by the higher rates that you will experience
after making such claims. As homeowners insurance intended for
major peril, consider higher deductibles and collect the savings
in the cost of your premium.
2. Multi-line Policy Insurance Discounts: Save up to 15%
Purchasing your homeowners insurance and your car insurance
from the same insurance carrier could save you up to 15% on
both premiums.
3. Additional Security and Safety: Save up to 20%
Have you added new security devices to your home in the last
year; perhaps a deadbolt lock, window locks, or even and an
alarm system? Insurance companies highly value the protection
afforded by fire sprinkler systems, burglar alarms, and fire
alarms - especially those connected to monitoring agencies such
as your local police and fire department. Accordingly, some
carriers reduce premiums by as much as 20% if you install some
of these features.
4. Discounts for Home Improvements
A new home's electrical, heating, and plumbing systems, and
overall structure for that matter, are likely to be in better
condition than those of an older home. Accordingly, their insurance
rates are generally lower as the risk for a potential claim
is mitigated. If you have made any home improvement in the past
year, you should see if a new policy will reward you with policy
discounts.
5. Eliminate Coverage You Don't Need: Analyze Your Homeowners
Limits
Ideally, you want your policy to cover any major purchases or
additions to your home, but you should not spend money for coverage
that you don't need. You may have jewelry, appliances, electronics,
and other valuable possessions that depreciate over time; therefore,
it is in your financial best interest to compare the limits
of your homeowners policy to the actual value of your possessions
at least once every year.
