Home insurance has become a crucial part of the modern lifestyle, protecting homeowners and their more tangible assets from the unexpected. Ironically, insurance policies belong to the rare group of things that people spend money on, yet hope that they won’t have to use or need – ever.
While most of us recognize the importance of having the right and sufficient home insurance coverage, many homeowners are still having second thoughts about getting one or renewing their policies. Let's face it – home insurance premiums don't come cheap and can weigh on the family's budget.
Still, the increasing cost of homeowners insurance policy should not deter you from protecting your home and your belongings. There are plenty of ways to lower your insurance premiums, and we’ve rounded up some of them for you.
Create a more disaster-resistant home.
Prepping your home for disaster may not drastically lower your insurance premiums, but it will allow you to have more home insurance options to choose from – especially if you're living in a disaster-prone area.
Consider installing storm shutters and shatter-proof glass or retrofitting an older home to make it withstand earthquakes better. While you’re at it, why not upgrade your plumbing, heating, and electrical systems as well? Even a small and simple improvement can help prevent excessive damage to your home and save you from making costly claims in the event of a disaster.
Invest in your roofing system.
Most insurance companies offer big discounts for homes with tough and sturdy roofs, so make sure to choose a roofing material that can take a beating. Before building a house or re-roofing an existing one, ask your agent about insurance discount rates for specific types of roofing.
Standard asphalt shingles are known for their ability to withstand severe weather conditions and should entitle you to significant savings on your premiums. If you want to get an even more substantial discount, go for metal roofing -- but be prepared to shell out three or four times the price of standard asphalt shingles.
Improve your home’s security.
Contrary to what many people might believe, installing a reliable home security system isn’t THAT expensive. Besides, the investment tends to pay for itself as insurance companies are likely to offer you a cut on your insurance rate.
There are plenty of security features to fit your home with – burglar alarms and motion sensor lights are two of the most common examples. If you're on a tight budget, something as simple as installing a deadbolt on your home's main doors should help slash about five percent from your premium.
Bundle your insurance policies.
Reduce your premium some more by taking advantage of the multiple-policy discount offered by most insurance providers. Purchasing two or more policies – for example, a home insurance and auto insurance policy – from the same insurer will not only save you money; it's going to be more convenient for you too, as you'll only need to contact one person for most of your insurance needs.
Raise the amount of your deductible.
Your deductible is the amount of money you need to pay toward an insured loss. Opting for a higher deductible will lower your premium and reduce the cost of your home insurance policy.
If your home is located in a disaster-prone area, discuss with your agent about having a separate deductible for specific disasters.
Compare offers, but NEVER skimp on insurance.
Shopping around and talking to different insurance agents will help you find great deals. However, make sure that you’re choosing an insurance provider based on the value of their offer and not because they’re giving you the lowest premium.
Before you make your final decision, ask some of your friends and family members for recommendations, and don't forget to check on the financial health of the company.
Also, get a feel of their company culture and the level of their customer service while comparison shopping. Doing so will give you valuable insight into how dealing with them is going to be like, should you need to address a concern or file a claim in the future.
