Insuring a home is not a cheap affair, especially if you require comprehensive coverage. Many people think the only way they can pay less for their insurance is by sacrificing coverage. This is why many people end up underinsured. However, there are certain ways that you can get to pay less for your home insurance while still enjoying the desired level of coverage.
Don't Settle Too Quickly
Don't stop looking around the moment you get a quote from one insurer. Take a little more time to look for an insurer with friendlier rates. You can get a quote online from many insurers within minutes, and at no cost. Get as many quotes as possible and pick the one with the best price to cover ratio.
If possible, consider bundling up your policies. If you already have an insurer for your car, ask them if they also insure homes and whether you can get a good deal by bundling your policies. When you have two or more policies with one insurer, you can always get a good deal.
Consider Paying a Higher Deductible
The thought of paying a deductible of $1000 or more may seem daunting but it may be cheaper in the long run. Consider paying a higher deductible as this can bring down your costs by a significant percentage. A good approach is to set money aside just in case you need to pay the deductible rather than being blind-sided.
Protect Yourself From Risks that Aren't Covered
You can remove certain coverages to reduce premiums, but then take equal steps to fortify your home against losses in that category. If you remove coverage for water damage, take steps to ensure that you don't have mold, such as hiring a mold removal services team. If you aren't getting coverage for fires, check the quality of your sprinkler system.
Get Group Coverage
There are many insurance companies that can offer low rates if people are being insured as a group. If you're employed or you belong to an association, ask around if they already have an arrangement with a particular insurer. If not, ask them if it's a viable option.
Keep an Eye Out for Discount Opportunities
For many insurers, anything that will make it less likely for you to make a claim is good news. This is why many will offer lower rates on your homeowners' insurance if you take measures such as:
- Installation of a good security system
- Modernizing the plumbing system
- Modernizing the electrical system etc.
Maximize Your Claims
Any time you use your policy, you want to get the most for your insurance claim without having your rates go up. A public adjuster company like Concordia Claims Managers will help you assess the true value of damage to your home and make sure it gets covered by the insurance company. If your insurance coverage isn't going to be comprehensive, this will be even more important.
There are also discounts that are offered for specific groups of people such as military personnel (active and veterans) or even people who live near emergency responders, such as a fire station. Ask your agent if there are any other discounts that you may qualify for.