Overpaying on homeowners insurance can cost you hundreds of dollars a year. The price of insurance depends on a few things like the policy and the company you choose. Below are a few ways you can save money on homeowner's insurance.
- Shop around: Look at different companies and see who gives you the best rates. Get online quotes, check consumer guides, and call insurance agents to get an idea about the price ranges for insurance. Before you settle on a company, research to make sure that the company is financially stable. After you have done your research, try to narrow your choices down to 5 companies and get quotes from each company. Home Insurance Web is one website that allows you to compare prices for different home insurances.
- Raise your deductible: You can call your insurance company and request they increase your deductible. This means that if something happens in your home, you have to pay more money out of pocket before your insurance kicks in. If you choose to increase your deductible your premium amount (monthly, quarterly, or yearly payment) is less. By raising your deductible, you save money on your premium but the assumption is that you have enough money on hand to cover the higher deductible if something unexpected were to happen. If you have a good emergency savings fund, this may be a good money saving option. If you have no emergency savings, this is not a great option.
- Bundle with other insurances: If you're able to use the same insurance company for multiple policies (auto and life), you can often save money. If you're able to bundle your homeowners insurance with your car insurance, often times the company will offer you a lower premium. If you decide to bundle, do your research. Some companies can save you large amounts when you bundle policies. When deciding about whether to bundle or not to bundle, just make sure you look for the best insurance rates and best coverage period. Make sure the policy is going to provide you with what you need at a cost you can afford.
- Look for discounts: Some insurers offer discounts (employee, senior citizens). Contact your insurance company to see if you qualify for any discounts.
- Improve home security: Security systems and deadbolts can save you 5-20% on your home insurance. Some companies offer discounts if you install a certain security system in your home. Most of these systems are expensive so check with your insurance company to see if they offer a discount before you spend money on the system