All homeowners want to find ways to lower their home insurance costs. Every year they continue to rise higher and higher. Below are some great tips that will help ensure you get the best home insurance rates possible.
Home Security System – Having a home security system in your home can save you lots of money on your insurance costs. As well, installing dead bolt locks, fire extinguishers and smoke detectors you will get much better rates on your home insurance. The fire alarm and burglar arms systems you have should be monitored. You don’t have to have all of these, even with just a couple of them you can ask for reduced rates for having what you do.
Credit Score – Most people don’t realize that their credit score and home insurance rate go hand in hand, but they do. Your score is a good indication to the home insurance companies what type of risk you are and how responsible you are. They figure if you are more responsible and have a good credit score, you won’t be filing as many claims. Keep your credit score high and you will get lower home insurance rates.
Grouping Together Policies – Almost all insurance companies are going to offer you a much lower rate by combining your auto, life and other insurance policies with your home insurance policy. Sometimes these discounts can be up to 30 percent or more. With this, you also get the convenience for having one agent for all your insurance needs.
Improvements/Repairs – As you make any type of home improvements and repairs, be sure to talk to your insurance agent to see if you can get some discounts for keeping the up the home with repairs. Many will offer a discount to people who get a new roof, update their plumbing, HVAC or electrical system. If you do make these changes, be sure to check on receiving a discount.
Amount of Insurance – You don’t always necessarily have to cover the total amount of cost for your home in home insurance. Remember that when you bought the home the value of the land was rolled in and there’s no need to cover dirt. It’s best to know how much the home construction cost was without the land. You can ask a builder how much new homes costs are averaging per square foot and multiply that times your homes square footage. That’s about the amount you want to insure your home for. An insurance company won’t ever pay more than the cost of what it takes to rebuild your home, so you want to keep within that limit and don’t go overboard.
Deductibles – When you purchase home insurance, the lower you have your deductible (the amount you pay out of pocket before the insurance will pay) is the higher your premium is going to be. Most people try to stick around a $500 deductible, but you can save a lot by just raising that number to $1000. It can save about 20 percent. Just be sure that your deductible amount is an amount you can pay if something should happen.
Jimmy Jones is a blogger for Houseinsurance.com covering all kinds of home ownership questions, concerns and industry news.