5 Ways to Lower Your Homeowners Insurance Costs

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are 5 ways you can lower your homeowner's insurance costs.

1. Shop Around:

How many of us know whenever we are getting a good deal on our home insurance policy? Shop around and comparison shop. You may be amazed at the savings that you are missing out on. Use the Internet, ask your friends, check the Yellow Pages or contact your state insurance department. National Association of Insurance Commissioners and get rates from 3-5 different homeowner's insurance companies.

2. Raise Your Deductible:

Deductibles are the amount of money you have to pay towards a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. While most insurance companies recommend a deductible of $ 500, if you can affords to raise your deductible to $ 1,000, you can save as much as 25% on your homeowners insurance.

3. Do not Confuse what you paid for your house with rebuilding costs:

This is the most common mistake that homeowners make when deciding the replacement value of their home. If your home is worth $ 150,000 and the land it is on is worth $ 25,000, then the cost to rebuild your house if $ 125,000. Do not get insurance for $ 150,000 as the land is not going anywhere.

4. Buy your home and auto policies from the same insurer:

Some companies that sell homeowners, auto and liability coverage will take 5 to 15% off your premium if you buy two or more policies from them. But make sure this combined price is lower than buying individual coverage from two different insurance companies.

5. Improve your home security:

Adding smoke detectors, burglar alerts or dead-bolt locks can drop the cost of your insurance by 5-10%. Adding a sophisticated fire and burglar alarm that rings at the police, fire or other monitoring stations can also save you 25% -33% on your homeowners insurance.

Source by David R. Wilson

Author: Admin

Aiding the people by providing them the right information about their problems.

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