By Debbie Dragon
Home owner’s insurance premiums are costly, but there are a
number of ways you can reduce the amount you pay to cover your
home against the unthinkable. Here are 7 ways to reduce your
home insurance premium:
1. Install an alarm system. Most insurance companies will provide
you with a discount if you have an alarm system installed in
your home. Discounts range between 5% and 30%.
2. Combine all of your insurance policies. Look for an insurance
company that offers multiple lines of insurance policies and
then insure everything with one provider. For example, your
home owner’s insurance, automobile insurance, and life insurance
can all be with the same company which will likely result in
a “multiple line discount”, typically 10% off your total insurance
premium. Look for a mortgage list brokers which can help you
get a list of providers in your area, specifically ask for their
direct mail mailing lists which will contain all of the latests
ads and offers.
3. Disaster Protection and upgrades. In areas that are prone
to natural disasters (earthquakes, hurricanes, etc) you can
often install features like reinforced roofing or storm gutters
and gain a discount. Sometimes upgrading your heating and electrical
systems will give you an insurance premium discount as well,
so check with your company to find out if any of these home
upgrades will result in a discount.
4. Stop smoking. Not only is smoking bad for your health, but
it’s one of the leading causes of home fires. Smokers pay less
for home owners insurance than non-smokers. Quit smoking and
call the insurance company to update the record for a lower
insurance premium.
5. Raise the deductible. Just like automobile insurance, homeowner’s
insurance premiums have deductibles. This is the amount of money
you pay if you submit a claim; the insurance company pays for
damages above and beyond the deductible amount. If you can afford
to raise your deductible from $500 to $1000, for example, you
can experience savings of around 25%.
6. Raise your credit score. It seems more companies are relying
on a credit score to determine how much people should pay for
certain policies- and home insurance often relies on your credit
score as a determining factor in how much you’ll pay for home
owner’s insurance. Agree with it or not, the best thing you
can do is raise your credit score.
7. Forget about the land. Most disasters will cause damage to
your home, and very little to the land. Decide to cover your
home only and you’ll save considerably on your home insurance
premiums. Many marketers that collect new homeowner lists will
specifically market home-only insurance. If your land is in
a hot area, you don’t need to insure it.
