Home insurance is a necessity for home owners across the US and Canada. You cannot risk having an accident or burglary and not having the means to cover it. Repairs are expensive and the cost of replacing damaged or stolen goods may run into the thousands of dollars. Heirlooms may be irreplaceable. It is far easier to avoid that stress and insure your home. In these tough times, saving money on your essentials is something you should not be afraid of doing, even on things like insurance, which a lot of people just don’t bother touching. We will look at different ways of saving money on your home insurance in this article.
Examine Your Deductible
This is one of the simplest ways to save money. A deductible is how much you have to pay towards damage, theft, etc. to your home. Your insurer will cover the rest. Say you have an accident which causes $10,000 worth of damage and you have a deductible of $3,000. You will pay the $3,000 and your insurer will pay the remaining $7,000. Increasing your deductible will reduce your monthly premiums. Remember to only increase it to something you can afford. Don’t put your finances under pressure.
Home Value
Real estate values have fluctuated wildly over the last few years. The original value of your home may have fallen significantly or stayed the same. Research the price of your home and make sure you have not over-insured or under-insured. Make sure your coverage is right for the valuation of your property.
Multi-line Discounts
Think about buying home insurance from your auto insurer. Lots of insurance companies offer multi-line discounts to customers buying different types of insurance from the same insurer. Check to see if yours does this and find out how much you could possibly save. If you are thinking of leaving your insurer, wait until the policy is close to renewal to avoid any cancellation fees.
Check the Fine Print
Make sure you know exactly what the policy will cover before you take it out. Lots of policies do not cover damage by animals, whilst others may not completely cover missing jewelry or watches. If you are unsure of any aspect, ask the agent or salesperson to explain it carefully. If in doubt, do not sign.
Older Homes Beware
If you are interested in buying a period home, you may have difficulty finding affordable insurance. New homes with up-to-date wiring and plumbing are less risky to insure whilst older properties may have a myriad of issues to contend with. Expect larger premiums if you choose to go this route.
Use a Preferred Agent
Insurers have agents they prefer against others; particularly those which generate a lot of business for the company. Customers buying through these favoured agents can get flexible pricing and greater freedom with what can and cannot be insured.
Land
Insuring the land, for most home owners, is a waste of money. Only insure the property and not what’s underneath it. Including the land in your property’s valuation means you could be overpaying. Check your property tax bill for a breakdown of how much both your home and land are worth. Subtracting the land value from your property value should give the figure to insure for.
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