If you’re in the market for homeowners insurance, you may not know where to begin when it comes to saving money – especially if you’re getting your first mortgage. Of course, the prospect of getting insurance isn’t really an exciting one, but it’s important to know what to look for to get the most value out of your policy. Sure, you should get homeowners insurance quotesto determine which provider offers you the best premiums and coverage. But what else should you do to ensure you’re getting the best premiums?
Here are 5 ways to save on homeowners insurance:
1) Mitigate risk
Your homeowners insurance company, like your auto insurance company, will evaluate the risk and potential cost of insuring you before determining your premium. Part of the criteria is the degree to which your home is vulnerable to damage or loss resulting from natural disasters, fires and burglaries. Insurance companies offer serious benefits to homeowners who take steps to reinforce their home to deal with natural disasters. Likewise, they reward homeowners who install fire and burglar alarms and make their home otherwise less prone to property damage.
2) Combine policies
Just like the local cable company who offers discounts for bundling phone, Internet and TV service, you can get discounts when you buy your auto, home and other types of insurance from the same provider. Find a provider in your area and ask about discounts associated with getting multiple types of coverage.
3) Know what you’re insuring
When you purchase your policy, make sure you’re only insuring the amount it would take to replace your home if it were to fall victim to a fire or natural disaster. Some people unnecessarily factor in the value of the land their home sits on when determining their coverage amount, which ultimately inflates their premiums.
4) Keep good credit
Like with many other long-term obligations, what you pay in homeowners insurance will be partiallyinfluenced by your credit history. To get the best rates, clean up your credit report and ensure you’re managing your debt properly.
5) Raise your deductible
For those who live in areas not especially prone to property threats, raising the deductible is a good way to save money on premiums. Although higher deductibles require a higher contribution when you make a claim, it can reduce your premiums over the long run and save you money if you don’t make a claim for a significant period of time.
Saving on homeowners insurance is similar to saving on other types of insurance: mitigate risk, get discounts by getting all your insurance policies from the same provider, insure only what you need to, keep good credit, and weigh the advantages of a higher deductible. Do these things, and you can get optimal value – and that’s not even accounting for special rates you can get from providers when you do your due diligence and shop around for the best rates and coverage.