Home insurance is something you must have. It's necessary in order to get a mortgage and even if your home is paid off, you want insurance to protect you against loss if your home is damaged. It's a necessary monthly expense, but here is more information on four ways you can save a little money.
Evaluate Your Policy As Housing Prices Change
You'll want to pace your insurance to match the price of your house. For instance, if the economy causes your house to fall in value, you might want to change your policy to reflect that so you can lower your payments somewhat. This requires you to evaluate your insurance policy once a year when it is due to see if you need to make any adjustments that could lower your payments.
Ask About Discounts
You might get a break on your insurance policy if your home has certain safety features. For instance, if you have fire alarms and a security system installed, you might get a lower insurance rate. Also, things like impact windows, metal roofing, and security doors might make a difference too since they add protection to your home. While you may not want the expense of adding any of these features, you'll want to find out what things can lower your insurance rate so you can go through your house and see what you already have that could earn a discount.
Bundle Your Home Insurance With your Car Insurance
It's possible your agent will give you a lower rate if you buy all of your insurance through the same company. This would give you a bundled deal for your home, car, boat, and life insurance. This could save money over paying for each type of insurance policy separately. However, you'll want to examine each policy carefully if you plan to switch your car insurance from another company to make sure you still get quality coverage at a more affordable price.
Play With The Coverage And The Deductibles
You can adjust the price you have to pay by making changes to your coverage and the deductible. A higher deductible usually means lower monthly rates. By looking at what your policy covers and the amounts you can receive, you can decide if you need more or less coverage. For instance, you may not need much coverage for jewelry or household furniture if you don't have any jewelry or if you don't have expensive furniture.
You mainly want good coverage on things like the roofing and structure of your home. You can also choose if you want replacement coverage or market value for your home. If your home is destroyed by a flood, market value will be much less money than you'd get for replacing your home, but your insurance payments will probably be less. No matter which type of insurance you buy, you'll want to examine the current price of your home against the cost of labor and reconstruction and decide each year which is the best option for getting the best coverage at the best price.