Many of the tips you will find to help you save money on homeowners' insurance may require you to sacrifice the quality of your coverage in order to secure a lower rate. While this may be tempting at first, you may not want to do this if you ever find yourself filing a claim against your policy. Thankfully, the tips outlined below allow you to have the best of both worlds. You can save money while still keeping the quality homeowners' insurance coverage that you need.
Raise Your Deductible Slightly If You Can
Rather than giving up the coverage that you need, you may wish to raise your deductible slightly if you are financially able. Even a small difference in your deductible can have a significant impact on your monthly premiums. Over the course of time, this approach can save you a considerable amount of money even after you take into account your slightly higher out-of-pocket expenses in the event that you do need to file a claim. For example, if you raise your deductible by $500 and receive a discount of $1,000 on your annual policy as a result, you will have still saved $500 over the course of the year even if you must file a claim and pay this higher deductible.
Verify Your Rebuilding Costs Are Accurate
Some individuals list the cost of rebuilding their home as the current value of their home. However, when your home is appraised, the value that your home has includes the value of the land that your home sits on. If disaster strikes and you are forced to rebuild your home from the ground up, it is important to remember that you will not need to replace the land itself. Consequently, the cost of rebuilding is not really the same as the value of your home. Making sure that your rebuilding costs are accurate can prevent you from paying for more coverage than is needed.
Tell Your Insurance Company About Upgrades
Home improvements that reduce your risk of filing an insurance claim can result in some pretty hefty discounts. For instance, if you choose to install an alarm system, install a fire-resistant roof, or even switch from a natural gas furnace to a heat pump, all of these upgrades can make your home safer and therefore reduce your risk of filing an insurance claim. However, if you fail to report these upgrades to your insurance company, you will not receive the money-saving discounts you deserve. This is why it is so important to report any upgrades to your insurance agent before your policy renews. This way, you make sure you are getting all of the discounts you are entitled to.
For more information, contact a homeowners' insurance provider.
Share9 June 2021
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!