You bought a home! Congrats. That’s a big deal. Now’s the time to buckle down and start looking for homeowners insurance. This is daunting a lot of homeowners, old or new. You want to be smart about money. Perhaps you have a budget and you can’t afford hundreds each month to pay for insurance. Or, maybe, you’re always trying to save as much as you can. Who isn’t?
With the right knowledge, you can get a deal on your insurance coverage. Here’s how.
The first thing you should do when looking for homeowners insurance is what you do when shopping for anything. Explore your options. A few phone calls and google searches will find you a lot. Homeowners insurance quotes compare both your financial options as well as safety and security needs.
Improve Your Home
Besides the obvious, you can always make little changes to your home to improve it. In fact, home improvements can actually lead you to lower premiums. Insurance companies will offer lower rates for a variety of factors. Whether it’s improving the structure and build of your home with wiring and plumbing, or fixing up your roof, it’ll be sure to lower the cost of insurance. This is because you’re more prone to safety in the first place.
If your home is already falling apart, your policy may be high and the insurance company will likely charge you a larger fee. There isn’t much for them to lose by giving you a lower rate if you’re already living in a safer home.
Higher Deductible = Lower Premium
As with most insurance, you can save tons of money on your policy by agreeing to pay a higher deductible. This will save you a lot on your annual premium. The only issues is that if you do have an accident, you’re responsible for it until it reaches the higher deductible limit. So, definitely keep in mind that you have to afford that additional amount before agreeing to a high deductible.
Since your premium goes up when you make a claim, a higher deductible will decrease the amount of claims you make. Just make sure you can afford the risk.
Strong Payment History
In addition to finding the best discounts, maintaining a strong payment history will help you pay less on your homeowners insurance. Like most businesses, insurance companies are using your credit information to price homeowners insurance policies. To protect your credit standing, make sure you’re paying your bills on time. A useful tip is not to obtain more credit than you need. Having several credit accounts typically means you have higher balances. Try to keep your accounts with low balances to improve your credit score.
Additionally, make sure to check your credit record on a regular basis. You want to make sure your credit standing is always accurate and that you’re up to date with all of your payments.
Consider an Umbrella Policy
Although it won’t necessarily save you any money upfront, consider obtaining an umbrella policy. In the event where a construction worker falls off your roof and breaks his neck, getting sued won’t hurt you. Your insurance will cover it, saving you plenty of money in the long run. Having this liability coverage might save you an incredible amount of money and leave you less stressed in the event an accident occurs.
So, there you have it. With this useful information, you’ll be able to save plenty with your homeowners insurance. Remember to keep a great credit score, compare costs, consider umbrella policies, and keep your home in tip-top shape.