Most people would agree that a home is one of the most important purchases an individual will make in his or her lifetime, and for this reason it is essential that the homeowner obtain suitable insurance for the property. Saving money on home insurance is not as difficult as one may think, and the following are some tips on how this can be accomplished.
Many house insurance policies include certain benefits that an individual may find unnecessary. These include free legal advice, or coverage for lost belongings while traveling. It is wise to read through the entire policy to discover which benefits are practical and useful, and which ones could be eliminated. By reducing coverage, one will find that his or her premiums can be significantly lowered.
Although most insurance companies allow clients to pay their premiums in monthly instalments, there are some agencies that will charge interest for this option. If possible, a homeowner should make arrangements to pay his or her insurance premiums yearly, as this will be less expensive than paying month to month.
Avoid Small Amount Claims
Making numerous claims for small amounts can increase the cost of a person’s home insurance, as his or her provider may view such a client as a high risk and increase the cost of the coverage. This will also result in the homeowner losing any “no-claims” discount associated with his or her policy. While a person is certainly entitled to enter a claim for anything covered under the policy, it is wise to ask oneself if the small claim is worth possible future price increases.
Choosing a policy with a higher deductible is also a quick and easy way to reduce the cost of insurance. Depending on the provider one uses, selecting a higher deductible can result in the homeowner saving as much as 20 per cent on his or her annual premium. While this means the homeowner must pay a higher amount towards repairs in the unfortunate event that a claim is filed, it is still one of the most popular ways of reducing the cost of property insurance.
If a homeowner protects his or her property with a security alarm, sprinkler system, outdoor lighting or window locks he or she can expect a premium discount of approximately five per cent. It is wise to first call an insurance agency for recommendations before selecting a system. Additionally, smoke detectors are required in certain states, and some carriers will refuse to insure a home in which no smoke alarm is present.
By comparison shopping, one can usually reduce his or her premiums by a considerable amount. Although this may seem like an obvious point, statistics have shown that a high number of consumers obtain only two quotes when shopping for insurance, or simply renew their current policy without comparing its price with that of other providers. Numerous home insurance websites will compare multiple policies for those visiting the site, making the task of comparison shopping easy for anyone.