Five Easy Ways To Lower Your Home Insurance
While home insurance doesn't account for a big part of your mortgage, it is one of those little costs that can quickly add up if you're not careful.
Here are the top 5 ways to lower your home insurance costs:
1. Shop Around
Let's face it, most of us probably got our home insurance through a 'friend of a friend'. That's not necessarily a bad way to go, but, it could be an expensive way to go. Make use of the Internet, your existing insurance agent, your mortgage broker, consumer guides and the online insurance quotation services.
2. Raise Your Deductible
The deductible is the amount that you pay before receiving anything from your insurance company. This means that the higher your deductible, the lower your home insurance premium will be . . . and this savings can quickly add up.
3. Don't Be Over-Insured
Many people make the mistake of insuring their home for the amount that they paid for it. But rebuilding costs are not the same thing as the purchase price of your home. Why? That's because your home sales price includes the land, whereas if you need to rebuild your home the land will already be there.
4. Combine Your Policies
Most insurance companies offer a very nice discount if you have more than one policy with them. One of the first places to check for home insurance should be the same company agent that you are getting your automobile or renters insurance from.
5. Reduce The Risk Of An Insurance Claim
Older homes in particular can be more prone to damage then newer homes. Updated electrical and plumbing, re-roofing, installation of storm shutters and the like are all things that can be done to make your home more disaster resistant and help to reduce the likelihood of your having to make a claim against your home insurance.