Owning a home means planning on various types of expenses. One of those expenses is the payment each month for homeowners insurance. Homeowners will pay for their homeowners insurance by sending payment to their agent, directly to the insurance company, or having their mortgage company make the payment when it is due. If your cost for homeowners insurance is increasing, then a few tips are available that can help lower or offset the annual cost.
Many insurance companies operate in every state and may offer homeowners insurance. The best thing to do when searching for a new insurance company is to find an independent insurance agent. They are typically licensed with many insurance companies. Many use specific software that gives them a list of companies and their rates for a homeowner’s insurance policy. Homeowners can then the policies to see if any will provide the necessary savings. Make sure to compare policies every few years to see if there is another company that is offering a better price for a policy.
Consumers can save up to ten percent or more on the cost of homeowners insurance by choosing a high deductible. The deductible is an amount that is deducted from the insurance payout whenever a claim is made by an insured. This means a higher deductible will be less the insurance company will pay out for a claim. This is why policies with higher deductibles cost less than policies with lower deductible. If an existing customer with a $500 deductible raises it to $1500 or more, then the savings will be significant when the premium is calculated.
Add Security Features
Insurance companies offer discounts when a home has certain security features. A basic discount can be provided when doors have a deadbolt lock. Another discount will be provided when a home has at least one smoke detector and a carbon monoxide detector. A home that also has a fire extinguisher on hand is also eligible for a discount. There are simple things that will lower the cost of homeowners insurance if they are not currently applied to a policy. Review the declarations page of the policy for your home and see if these discounts apply.
A substantial discount is provided to customers of an insurance company when they have their house and car insured. If a home and car is insured by the same company, then a multi-policy discount can be applied to lower the cost of both policies. Insurance companies typically offer a discount that will be in a range between 10 and 20 percent.
Insurance agents often use software that estimates the amount of insurance for a homeowner. If there is no need to have a high amount of coverage for personal property, then a lower value decreases the total cost. However, a homeowner should add up the value of items in a home such as furniture and all types of electronics to calculate a basic value.
Contact a local agent or view policy options online to see if other options are available.
Author Bio: Thomas Jay is a content writer at InsuranceLand.org. Thomas lives in beautiful Orlando, Florida with his wife a two kids. He is an avid sports fan and enjoys blogging on a variety of topics.