Reducing Home Insurance Costs
Homeowner’s insurance can vary greatly, so take the time to do your research. Since you’ll be paying home insurance premiums year after year, finding ways to reduce these costs can save you quit a bit of money in the long run. Here are a few ways you might be able to lower your home insurance costs.
Shop Around
It’s easier than ever to compare insurance rates - take the time to do your homework. You can do research online, consult with friends and family, call your state insurance department or check consumer guides.
Install an Alarm System
Insurers like the idea that extra measures are being taken to protect and safeguard a home. For initial cost purchase cost of just a few hundred dollars, buying an alarm system can often cut down insurance rates by as much as 20%.
Multiple Policies
Often times a company that sells auto, life, homeowner and liability coverage will take 5%-15% off your premium if you purchase two or more policies from them. While this is obviously a great place to start, make sure to contrast this total with what you would spend on the same policies using multiple companies.
Gated Community
Most insurance companies believe that more eyes equal fewer problems. If you live in a gated community you may be eligible for up to a 10% reduction.
Improve and Upgrade
You may be able to save money by making your home more resistant to natural disasters such as earthquakes and windstorms. This can include re-enforcing your roof or retrofitting your home. Another option is upgrading systems such as electrical and plumbing to reduce the risk or fire or flooding. Contact your home insurance company to find out what specific things you can do to reduce your premiums.
Good Credit
Establishing and maintaining a good credit is very important. More and more insurance companies are using credit information as a way to price insurance policies – especially for first-time home buyers. Check your credit regularly and, if necessary, take the steps to improve it.
Fire Safety
Smoke detectors, special roofing materials, and even the distance from your home to a fire hydrant and the local fire department can reduce your home insurance rate so be sure to ask about these and any other safety precautions you can take.
Long-term Client
Whether you’re a long-time client or shopping around for a new policy, this is a great way to lower your home insurance costs in the longer term. Often times if you’ve been with the same home insurer for several years you may be eligible for a 5%-10% reduction.