The average price of homes in the United States is about $200,000, which means that your home is probably the biggest investment you'll ever make in your life. Homeowners insurance is vital as it protects your home from damage or destruction. However, this does not mean that it has to cost an arm and a leg. It is supposed to protect you, not put you in a world of financial pain.
The following are some tips you can follow to save some coin on your home insurance:
1. Get multiple quotes
There are hundreds of home insurance companies out there and before choosing one, you have to at least find out what the others have to offer. Costs vary between different companies depending on various factors and it is up to you to find out what those factors are and how you can use them to your advantage. Talk to your friends, colleagues and family members about it and ask for recommendations on the best insurance firms. Ask them why they think you should choose the firm. The only downside to shopping around is that it may take quite a while. But, if you go through with it, you will be able to narrow down the list to two or three potential insurance providers.
2. Choose the highest deductibles possible
An insurance deductible is the amount of money the homeowner is willing to pay out of pocket before the insurance company pays for the rest following a claim. For instance, if your deductible is $1000 and you suffer a loss needing $5000 to fix, you will have to pay the first $1000 before your insurer clears the remaining $4000. The higher your deductible is, the lower the premiums you will be paying. For example, if you raise your deductible from $500 to $1000, it can save you up to 25% on premiums.
3. Maintain a good credit score
In most states, your credit score has a direct impact on your premiums. Insurance companies predict losses using credit scores. The higher the score, the lower the chances of the person to file a claim. People with high credit scores get lower premiums.
4. Bundle your insurance policies
Most companies that offer multiple types of insurance offer discounts to people who buy two or more policies from them. The discounts vary from insurer to insurer, but they can add up to a couple hundred dollars.
5. Boost your home security
Invest in smart security features that greatly reduce the chances of your home falling victim to vandals and burglars. Security cameras, motion sensors, smoke detectors, smart locks, and burglar alarms are some of the many steps you can take to boost security at home.
6. Seek out other discounts
Insurance companies offer all sorts of discounts in an effort to lure more clients. Some of them include:
a) Age discount - some companies offer senior discounts which can be as high as 10%.
b) Claims-free discount - some companies will reduce your insurance premiums if you don't make any claims in a specified period, usually ten years or more.
c) Non-smoker discount - Smoking increases the risk of fires. Non-smokers may qualify for huge discounts.