Your home is the biggest financial investment you may ever make. Getting a homeowner's insurance is the best way to protect your biggest investment. homeowner's insurance covers your home as well as the personal belongings inside your home. It offers protection for you and your family. With the continuous increase in insurance premiums every year - it is best to know ways on how to reduce the cost of your homeowner's insurance. Here are some tips that can help you save money on your annual premiums:
1. Shop Around. Get at least 3 quotes from several different insurance companies and compare. You can also ask your family and friends for their recommended insurance companies. Evaluate which companies provide the best customer service and are readily available to answer your questions.
2. Combine your Homeowner's Insurance and Auto Insurance Policies. It is advisable to check out insurance companies that offer both auto and homeowner's insurance. Some companies offer discounts of 5-15% if you buy both types of coverage from them.
3. Inquire about Discounts. Ask your company about all potential discounts. Different insurance companies offer different types of discounts.
4. Consider Insurance Consequences when Buying a Home. If you're looking at buying a home, also think about the cost of insuring the home. A newer home's electrical, heating and plumbing systems and overall structure are likely to be in better condition than those of an older home. This can lead to a discount on your premiums.
Also, consider the construction of the home and geographical location. If you live on the East Coast, you'll want the house to be able to stand up to wind damage; on the West coast, you need to keep earthquakes in mind. You can also ask your insurance agent what you can do to make your home less expensive to insure. Improving your home to reduce risks during fire, windstorms or other natural disasters will reduce your insurance premiums.
5. Investigate Group Coverage. You may be able to get a group coverage plan through your employer or a professional or business group. Group coverage is usually cheaper than individual coverage.
6. Review Your Policy Every Year. Make sure that you are not paying for any extra insurance. If you review your policy annually, you will be able to make the necessary adjustments on the value of your possesions.
For example, your insurance coverage includes insuring high value diamond earrings and you've just sold them - your annual premium will decrease if you declare this.
7. Stop Smoking. Some Insurance companies charge less if no one in the house smokes. This is because if anyone smokes, there is a higher risk of fire accident thus the insurer charges more for the risk.
8. Improve your Credit Score. Many insurers check your credit rating and base your policy on the information they find. Make sure your credit score is in good shape, and if it's not, seek out companies that do not run credit checks.
8. Improve your Credit Score. Many insurers check your credit rating and base your policy on the information they find. Make sure your credit score is in good shape, and if it's not, seek out companies that do not run credit checks.
If you need a list of reputable insurance companies, please contact me.
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