August 10, 2015
Homeowners insurance is vital for protecting your investment. It’s also required by lenders holding the mortgage on your home. For some reason many homeowners overlook ways they can save money on their premiums. Shopping around is a good idea, but much like auto insurance, there are many simple things you can do to impact how much you pay annually to protect your home.
Raise your deductible.
Do you really need a low deductible on your insurance policy? Many people can absorb the hit if they go from a $500 deductible to a $1000 deductible, and in some cases this simple move can reduce rates up to 25%. Deductible can have a dramatic impact on your premium, so ask your company rep to quote you the difference.
Don’t insure for your home’s purchase price.
Remember, you don’t have to re-buy the land your home is on if you have to rebuild. If you’ve asked for coverage which includes the land cost as well as the structure cost, you could be paying far more than you need to pay to protect your home.
Retired? Seek a discount.
If you’re over 55 and you’re retired, your insurance company may be willing to drop your rate by as much as 10%. Retired folks are home more often. This can help reduce burglaries and provide an early warning system for fires.
Ask for a loyalty discount.
If you’ve been with your insurance company for at least three years, call them up and bring this to their attention. Let them know you’re considering shopping for a new policy, and you’re curious if they can extend you a discount for being a loyal customer. Savings can range from five to ten percent.
Adjust your coverage for possessions.
You may be insuring for more than you own. Certain high-end computers and other luxury goods may depreciate over time. If the limits on your policy far exceed the value of your possessions, make changes to your policy. The difference can add up. (Do this every year.)
Factoring in insurance costs is an important part of determining how much home you can afford. For more information on how different types of homes can have different insurance costs, talk to me today!