5 Tips For Saving Money On Your Home Insurance
Homeowners insurance is an essential part of protecting the investment that you made when purchasing your home. Unfortunately, the need to carry this type of insurance also represents yet another bill that you will need to pay each month. Thankfully, you can help to keep your out-of-pocket expenses to a minimum by choosing to utilize the five money-saving tips below when purchasing your next home insurance policy.
Use An Insurance Broker
Unlike insurance agents or insurance companies, an insurance broker actually works for you. This means that their job is to ensure you get the absolute best insurance policy for your specific needs and budget. This goal is quite the opposite of an insurance agent or company who is primarily interested in selling you the most expensive policy they can. Best of all, while you can count on an insurance broker to help you secure a low-cost policy, you can also count on them to be very knowledgeable concerning the different insurance products on the market. This means that you don't need to sacrifice quality service just to secure a better price on the insurance coverage you need.
Consider A Higher Deductible
Your deductible is the amount you pay towards any repairs before your insurance kicks in to cover the rest of the bill. Typically the higher you set your deductible, the lower your monthly premiums are going to be. If you are able to cover a slightly higher deductible in the event you need to file a claim, this can be a great way of saving money on your home insurance over the long term.
Install An Alarm System
The lower the risk is that you will file a claim against your insurance policy, the better rates the insurance company will be willing to offer you. One of the ways that you can accomplish this goal is by installing an alarm system in your home. However, some insurance companies will require your alarm system to be professionally monitored in order for you to qualify for a discount, so be sure to check with your specific insurance carrier before deciding what type of home security system you wish to install.
Insurance companies offer a variety of different loyalty-based discounts. For instance, if you purchase more than one type of policy from the company, they will typically offer a multi-policy discount to reward you for your loyalty. Some insurers will also offer loyalty discounts based on how long you have been a customer. This means that your monthly insurance rates will continue to go down each time you choose to renew your policy with them.
Be Mindful Of Your Credit
Maintaining a good credit score can also help you to qualify for the lowest home insurance rates as more and more companies are relying on credit scores when setting premium rates. This is because individuals with good credit are less likely to default on their policy or cancel prematurely because they are unable to keep up with their payments.