How to Save Money on Home Insurance

When you look at the premium costs of taking out a home insurance policy, you will likely want to know if there is anything you can do to save money on your home insurance. Since every case is different, you cannot assume that because your neighbor gets home insurance for one price, you will get a policy for the same price. Home insurance rates depend on the size of your home, the amount of coverage you want and the location. There are steps you can take to reduce the cost of the home insurance policy without having to lower the amount of coverage you have.

The foremost way to cut down on your premiums is to raise your deductible. This is the amount that you are required to pay when you have to make a claim against your policy before the insurance company steps in to take care of the rest of the costs. A standard home insurance policy carries a $500 deductible. The rates are lower if you raise this to $1,000, but you have to decide whether or not you will be able to afford that kind of up-front out-of-pocket expense in the event of a claim.

Some of the other ways in which you can save money on your home insurance will require you to make relatively inexpensive renovations to your home. Safety features are looked upon positively by insurance companies and if you have them in your home, you will get a lower rate. These include such things as having smoke detectors in the home, dead bolts on the doors, locks on the windows and an alarm system installed.

Your insurance company will pay for damages caused by perils named in your policy, such as fire, lightning, wind, theft, vandalism and flood from within the home. It is your responsibility to make sure that you maintain your home. If you notice that the roof is leaking, repairing or replacing the roof will lower your home insurance costs. The same thing applies to new wiring or plumbing.

The number of claims you make against your insurance policy factor into the rate you have to pay when you renew your policy. This is also true if you switch companies because the new company will do a check on your record of insurance. If you are very diligent in making sure that you do your best to ensure that your home is safe and you do not have any claims, then you will benefit from lower rates for your policy.

Look for discounts from the insurance company you choose. By having your auto, home and health insurance with the same insurance provider will qualify you for a discount. You can also get a discount if you are over the age of 55 and if you have lived at the same address for a number of years.

Some insurance companies will also do a check on your credit. Making sure that you have a good credit rating tells the insurance provider that you are responsible in repaying your debts and this will mean a discount on your policy.

You should never only look for one quote for home insurance. With the many insurance companies that have an online presence, you can request free quotes from several providers and compare the policies so that you get the best possible coverage for the lowest price