Premiums of homeowner's policies can cost thousand of dollars a year, but they don't need to eat a big chunk of your budget. Follow these simple tips and you can reduce your premiums and save a lot of money.
1. Insure Only What's Needed
Focus on rebuilding costs. Some insurance company base their coverage level on the home's appraised value, which includes land costs. While you need to insure your home and its contents, there's no need to insure the land that it's built on. According to Kevin McCarty, President of the National Association of Insurance Commissioners, "Use the recent per-square-foot replacement costs in your area - available from your local Home Builder's Association.
Do the comparison and you'll see the difference.
2. Read Your Policy
Make sure to read your policy so there are no surprises when you file for your claim. Read the fine prints as well. This will save you the tons of headache and money in the future.
3. Upgrade your Security
Installing a smoke detectors, fire extinguisher, deadbolt lock, burglar alarms can earn you a discount on your homeowner's insurance. There are some cases, wherein the additional costs is offset from the discounts given by your insurance provider. Make sure to check with your insurance company.
Most insurers offer discounts of up to 10% to retirees. This is under the assumption that retired people spend more time at home therefore cutting down the risk factor because they can react quickly to unexpected incidents.
4. Maintain a Healthy Credit Score
1. Insure Only What's Needed
Focus on rebuilding costs. Some insurance company base their coverage level on the home's appraised value, which includes land costs. While you need to insure your home and its contents, there's no need to insure the land that it's built on. According to Kevin McCarty, President of the National Association of Insurance Commissioners, "Use the recent per-square-foot replacement costs in your area - available from your local Home Builder's Association.
Do the comparison and you'll see the difference.
2. Read Your Policy
Make sure to read your policy so there are no surprises when you file for your claim. Read the fine prints as well. This will save you the tons of headache and money in the future.
3. Upgrade your Security
Installing a smoke detectors, fire extinguisher, deadbolt lock, burglar alarms can earn you a discount on your homeowner's insurance. There are some cases, wherein the additional costs is offset from the discounts given by your insurance provider. Make sure to check with your insurance company.
Most insurers offer discounts of up to 10% to retirees. This is under the assumption that retired people spend more time at home therefore cutting down the risk factor because they can react quickly to unexpected incidents.
4. Maintain a Healthy Credit Score
Credit report can influence your
insurance rates. Insurance companies consider clean credit to be an indicator of risk factor. When you have a healthy credit score, you can get a lower insurance premium. Therefore, it is very important to check your credit report regularly and fix any errors that you find.
5. Shop Around
When choosing your insurance provider, make sure to do a comparison shop. You can check with your family and friends. Whatever you do, be sure to buy from a reputable company so you won't have any problems when filing for a claim.
5. Shop Around
When choosing your insurance provider, make sure to do a comparison shop. You can check with your family and friends. Whatever you do, be sure to buy from a reputable company so you won't have any problems when filing for a claim.
If you need assistance in choosing your homeowner's insurance provider, please don't hesitate to call me. I have a list of reputable home insurance provider that can take care of all your needs.
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