In order to effectively reduce your homeowners insurance costs you’ll want to take the necessary steps and precautions needed to lower your home’s risk for accidental damage. By using preventative measures to reinforce your home, as well as documenting the quality and range of items you possess, you can be sure that you’ll get the most out of your homeowners insurance plan.
#1 Lessen The Risk Your Insurance Company Takes On Insuring You
In order to reduce your homeowners insurance costs, you’ll want to be sure that you’re taking the proper precautions to reduce your home’s risk of accidental damage. You can ensure that your home is better equipped for natural disasters, fires, and burglaries by preparing in advance for the possibility of their occurrence. Storm shutters, reinforced roofing, and other added features to your home may reduce your homeowners insurance costs. Since many insurance companies will offer you an additional discount of up to 10%, for adding precautionary features, you’ll want to make sure that your home is equipped with fire extinguishers and a reliable alarm system when possible.
#2 Consider Your Homeowners Insurance Deductible Costs and Premiums
You can change your premiums from monthly to annual in order to reduce the various costs and fees that can be associated with your homeowners insurance costs. You can also save a noticeable difference on your bill by speaking with your agent to set up monthly electronic funds transfers. This allows your premium to be automatically deducted from your checking account and saves you money on your monthly bill. The next important step you can take is to increase your deductible amount. By raising this amount, your premiums will be lowered, giving you a reduced annual cost since you’ll be responsible for the out of pocket deductible.
#3 View Your Policy In Detail And Verify Your Important Items
When reviewing your policy and going over your possessions, to make sure that all of your major purchases are insured, you’ll want to review the amount of coverage you have on your items. If certain items are no longer worth what you originally paid for them, you’ll want to be able to reduce the added insurance you took out on them. Also, be sure to check that you still own all the items listed on your homeowners insurance policy. If you’ve given away or sold any of these items you’ll want to cancel the extra insurance coverage to save further money.
#4 Continue To Remain With The Same Insurer
By choosing to stay with the same homeowners insurance company for at least three to five years, you can expect a discount of around 5% off your total policy for your commitment. This discount continues to increase as the years go on and may increase to 10% or more depending on your policy. An exception to this rule is if you feel that your homeowners insurance rates are unreasonable. There are many reliable websites online that allow you to compare many companies at once using an advanced search engine to provide you with policy estimates.
#5 Keep Accurate Records And Proof Of your Property And Possessions
To make the most of your homeowners insurance policy, you’ll want to document the condition of your home and property. This will provide proof of the upkeep of your home and the condition it is in as well as the cost of any landscaping needs that you incur. Make sure you also document the outside of your home in case a storm or other disaster occurs that could seriously damage the structure. Lastly, you should keep an inventory of all important items, including tools and other equipment, so that you’ll be properly reimbursed for your property in case anything detrimental occurs.
Your homeowners insurance plan can work for you, instead of against you, by using these tips to give you full advantage of your policy while also reducing costs. You’ll be pleasantly surprised when you realize how much you can save by ensuring the safety and integrity of your home, property, and possessions.
Adam Vaught is an insurant consultant. His experience in the insurance industry spans over 15 years and he enjoys sharing his insights on personal finance blogs.