6 Foolproof Ways To Save Money On Your Homeowners Insurance

Written by Posted On Wednesday, 19 March 2014 16:12

Saving money on your homeowners insurance is one of the simplest ways for homeowners to cut monthly bills and put more money back in their pocket. Saving money on your homeowners insurance is easy, you just have to know the right strategies and think smart.

How do you save money on your homeowners insurance?

The most obvious way to save money on your homeowners insurance is by lowering your coverage and raising your deductibles each month. While this option is financially beneficial at the start giving you immediately lower monthly payments, it is extremely risky because it could end up costing you lots more in the long run.

For example, if your home incurs weather damage, which is common this time of year, your bills to fix the repairs could be much higher than necessary.

Save money with a great plan – not by lowering your coverage

Using higher deductibles as a strategy for lowering your homeowners insurance is understandable but there are other, better options out there available to you. If disaster strikes, you want your monthly insurance payments to help you out.

That’s why it’s imperative to prepare for situations like these by reviewing all price and coverage options available to you before choosing your insurance. By shopping around and reviewing your options, you could save hundreds of dollars a year.

6 tips to save you on your homeowner’s insurance


1. Ask about discounts. Your home may qualify you for discounts and deductions on your insurance that you weren’t even aware of. You can secure a lower premium if your home is equipped with safety features like dead-bolt locks, smoke detectors, or an alarm system. Other discounts include homes in gated communities and homeowners associations. An insurance agent may also offer long-term customers and homeowners over the age of 55 special senior discounts.


2. Insure your house, not your land. Most homeowner’s insurance plans cover perils such as fire, windstorms, hail, lightning, theft or vandalism. The fact is none of those perils will affect the land under your house! There’s no need to pay to insure the land so make sure you’re not. That means you need to subtract the value of your land when deciding how much insurance you need. Have your agent calculate what it would cost to rebuild your home if it’s destroyed and make sure they don’t include the market value of the land. If they do, you’ll be overpaying on your insurance.


3. Learn about what your policy covers. Don't wait until you have a loss to find out if you have the right type and amount of insurance. Sit down and talk with your insurance agent specifically about all damages that are covered by your plan. This includes a common loophole regarding natural “acts of God” which can catch homeowners off-guard. Know what your policy covers so there are no surprises down the road.


4. Review your credit score. A better credit score equals a better rate on your homeowner’s insurance. That’s why it’s worth your time to check your credit report and work on improving your score. Here are some great ways to help you increase your credit score. A good credit score will help you save money on your homeowner’s insurance and tons of other purchases and offers in the future.


5. Bundle your insurance. If you have automobile insurance separate from your homeowner’s insurance, chances are you’re paying too much for each. Almost every insurance company offers home as well as auto insurance with discounts when you bundle them together. These multi-policy discounts can save you at least 10% on each type of insurance. So find your favorite carrier and stick with them for all of your insurance needs.


6. Find an insurance agent you can trust. No matter what coverage you decide on, it’s important to work with an insurance agent who is trustworthy and has your best interests at heart. Finding an agent you can trust means they will work hard to qualify you for any discounts the company offers, help you make the right decision when deciding what to cover and putting you and your family first.

With so many ways to save on your homeowners insurance, there’s no excuse for paying an inflated fee. The best way to ensure you save money on your homeowners insurance and make the right financial decisions when it comes to your home is to consult an experienced real estate agent like the ones at First Team.

Originally posted at: http://www.firstteam.com/blog/?p=7795

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First Team Real Estate® is the largest independent brokerage in Southern California and voted the #1 Real Estate Company by the OC Register's Best of Orange County in 2011, 2012, and 2013


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