Owning a home is probably one of the biggest investment in a person’s lifetime. It is only apt that he takes good care of his precious investment by getting a home insurance policy. The home is where a person places his other important belongings too like jewelry, furniture or antique pieces. This is why getting a home insurance is vital in safeguarding cherished personal effects.
In order to get the home protected at the most affordable price possible, here are some helpful tips on how to reduce home insurance premiums:
1. Do comparison shopping.
This should be the first step in saving home insurance costs. Do not sign up for the first insurance company that approaches. Compare quotes and rates of different providers in order to get the cheapest at the same time best deal possible.
A number of insurance firms offer discounts if the person switches a number of policies to them. For instance, transferring home and auto insurance.
Always ask for at least three quotes for different insurance companies. This will allow the person a number of options before choosing an insurance provider. Comparison shopping can be done online, by phone or by going to the insurance office branch.
2. Right Coverage amount.
Some people pay for too much insurance. They include the property lot or acreage in the value of their home. The amount of insurance coverage should consider only the house value and personal belongings. Do not use the appraised value of the home since this often include the lot or ground where the house is built.
Personal effects that are not needed or have depreciated in value greatly should not be included in the coverage.
3. Avail of discounts.
There are a number of discounts that insurance providers offer to homeowners including: discounts for senior citizens, a non-smokers discount if no one at home smokes, combined purchase discounts for buying multiple insurance policies from the same provider and annual payment discount for paying the premiums yearly instead of monthly. Inquire from the insurance provider if there are other discounts allowed.
4. Securing the house against break-ins and calamities.
Installing safety features in the house can help reduce monthly premium payments. For instance, if the area where the person lives in is prone to theft and break-ins, it will be a good idea to install an alarm system, motion sensor lightinga and other anti-theft devices.
For threats of fire, installing a fire alarm system can greatly help in reducing home insurance costs. Other important safety features for the home include storm shutters and reinforced roofing.
5. Increasing deductibles.
Setting the deductibles as high as possible can greatly reduce home insurance costs. A deductible is the out-of-pocket expense that a person needs to pay in case of home damage. Since the insurance provider does not need to pay for the claim then the insurance costs will be effectively lowered. This can reduce the premium by as much as 35 percent.
Before choosing, it will be a great idea to review the coverage thoroughly. Making an informed choice is the best way to get affordable home insurance policy.
Jimmy Jones is a blogger for Houseinsurance.com covering all kinds of home ownership questions, concerns and industry news.