If you are a homeowner, it makes sense to protect your investment, and homeowner’s insurance is designed to do just that. But having homeowner’s insurance doesn’t mean you just have to pay what the insurance company says you must pay. There are things you can do to lower the cost of your homeowner’s insurance.
You can increase your deductible. When you increase your deductible, your premiums will come down, but there is a downside, you will have to come up with more out of pocket if you ever file a claim. Needing to file a claim is something nobody wants to do, and in fact it is a rare occurrence. So, if you want to take the chance, raise your deductible, it’s up to you.
Consider the location before you buy a home. Buying a home in a known flood area will bring up your insurance rate. Look in communities with professional fire departments. If you decide on a house, check to see if there’s a claim history associated with the house. Before you buy is the best time to find these things out.
Insurance is there to protect you when there is a catastrophic loss, but if you file claims for little things it’s going to cost you more. Don’t file claims every time something small happens, it will only drive up the cost of your insurance.
Check to see if there’s anything you can do to reinforce or modernize your home. Anything that can help safeguard your home against a disaster or fire will reduce your insurance costs. The same goes for security systems and burglar alarms.
Check to see if your land is being insured. Some insurance companies will insure the land your home sits on. There is little chance that something will happen to your land that will require replacement or repair. You may be getting charged for this.
Check with your agent to make sure you’re paying the right amount.