Home insurance can be one of the most important bills you might find yourself paying every month, yet many people overpay for it by accepting the first quote they see. For the majority of people, there’s no reason to settle for an unreasonable home insurance bill. If you save money in other areas of your life, why not apply the same simple principles to reduce your home insurance bill?
Here are some simple tips to help you save money on your homeowners insurance. Frugal people don’t have to go without insurance in order to save money if they put these tips into action.
Raise your deductible.
The single easiest way to reduce your monthly premiums is by raising your deductible. This is always a tradeoff to consider carefully, as this means you will have to have a little more cash on hand. If there is a disaster and you are required to pay your deductible, you will need to pay more – $1,000 instead of $500, for example. The money you save in premiums can easily be put into a deductible account if you want to fund this potential expense. Keeping a little extra in your emergency account is typically worth it, however, as most people don’t file claims for years.
Install safety features.
Your home insurance price depends greatly on the safety features in your home. If you have a smoke detector, for example, you will pay far less each month than someone who doesn’t. There is no reason to be without basic security like a smoke detector! Another type of safety feature many people overlook is an alarm system. Insurance companies are happy to offer people with alarm systems lower rates because their risk of burglary is lower.
Combine your policies.
Do you currently pay for auto or life insurance? Combining your policies can help save you money. The exception to the rule is if you have a policy that is particularly valuable – say, one you bought during a different economic time when the rates you were offered were better than today’s rates. In general, many insurance companies are willing to attract customers by allowing them to combine policies and receive a percentage discount for each policy they hold.
Shop around when you renew.
Don’t just automatically renew your policy every year – take the chance to shop around a little and find a better homeowners policy. Use an online comparison tool to get home insurance quotes that are tailored to your home profile and local area. Then, follow up with insurance agents or representatives to make sure you’re eligible for these rates.
Getting better home insurance rates isn’t an impossible chore. If you are frugal in other areas of your life, you probably have the patience required to save money on home insurance, too. There’s no reason you should be paying far more for home insurance just because you didn’t shop around enough before accepting a quote and signing a contract. When your contract expires or you move, take the time to shop around for the right policy.
Barry Johnson is an insurance adjuster. He frequently shares money saving tips on homeowner blogs.