Homeowners Insurance is 100% necessary for your home to help protect you and your financial investment in case of damages or theft. Anything from a robbery to your home burning down can be covered with insurance, but the cost of that coverage can be astronomical if you are not wary when choosing what kind and whom you have your insurance through.
We have compiled a few tips for how you can get the best bang for your buck. Keep money in your wallet and protect your assets—it is a win-win for all involved!
Premiums have been rising annually.
Did you know that a townhome, condo, or house is typically the largest asset owned by a consumer? Because of this, homeowners need to consider more than just the cost of the premium when they are researching their provider. They need to understand what they are getting, what out of pocket costs are associated with it, and the best coverage for your dollar.
Try increasing your deductible.
While a lower deductible always sounds more pleasant, a higher deductible will typically trigger a rate reduction. While you need to make sure your deductible is feasible, stashing that extra cash that you would be tossing away on higher premiums could help you shave a few dollars off annually.
Tuck away the difference for a rainy day so you are prepared if something were to happen to your home so that you can cover that higher deductible.
Multi-policies tend to lead to a rate reduction.
Having the same insurance company cover both your homeowners and auto insurance can save you hundreds of dollars each year. Check with your provider and see if bundling your coverages can help reduce your overall monthly/annual costs.
Your credit score can affect your homeowners insurance rates.
In fact, most insurance carriers use credit score as a portion of the rate-setting process in states where it is permitted. Maintaining a strong credit score is crucial—not only for better insurance rates, but for most large purchases you will make in your lifetime.
Consider insurance discounts available.
Did you know upgrading your home security system or replacing outdated plumbing and electrical systems can get you a discount on your homeowners’ insurance? Some discounts can be as large as 20% and are often available to consumers who have a professionally monitored system installed that manages everything: security, water, smoke/carbon monoxide, and video. Hint: Alert Protective can help get you set up so you can save BIG with your current provider.
Never settle for your first homeowners insurance offer.
You should compare rates with your local insurance companies annually. Shop around and compare quotes—see what your premiums include/do not include and make sure that you take the time to get the best insurance for your home at a rate that makes you comfortable.
Rates and premiums are constantly changing—so remember, never settle for the first offer. There may be something better right around the corner for you.
