Home insurance policies can get expensive quick! As a Realtor, I’m often asked if I know any ways to save on home insurance policies. I’m always looking out for my clients’ best interests, so below you’ll find some tips on the best ways to save on home insurance polices. These home insurance savings tips will help you bring down the cost of your insurance policy, allowing you to keep more of your hard earned money in your pocket!
Bundle Your Insurance
One of the easiest ways to save on home insurance policies is to bundle your coverage with other property you may have insured such as a car, boat, motorcycle, or RV. Nearly every insurance provider will give you a discount for insuring multiple items with them. If they don’t, you should find a different insurance company!
Increase Your Home Insurance Deductible
Another simple way to save on home insurance policies includes increasing your deductible. Increasing your deductible amount often translates into significant cost savings. Consider the probability that you would need to make some type of insurance claim. There are certain areas of the country where home insurance claims are far more prevalent. For example, tornados are extremely rare in California versus areas like Tennessee or Texas. Use your best judgement in deciding what exactly you think you may need.
Don’t Over Insure Your Home
This is a mistake I see time and time again. An incredibly easy way to save on home insurance is to make sure you don’t purchase too much of it! Keep in mind you don’t need to insure the value of the land. Some homeowners forget this and include it in the insurance amount they request. Realtors should be able to provide you with a pretty accurate figure to deduct from the insurance equation. All you want to insure is the cost of the dwelling.
On the flip side if you are a first time homebuyer you should be aware that earthquake insurance is separate from a homeowners insurance policy. So it is equally important not to under insure your home as well.
Get Protective Device Credits
Many insurance companies that will provide you discounts for certain features in the home such as a security system, fire alarms, carbon monoxide detectors, special security locks or some other type of “disaster proofing” like storm shutters. Other providers will even give discounts depending on how close you live to a fire or police station. When shopping for a rate quote, specifically ask the insurance carrier about their protective device credits.