Saving on homeowners insurance costs is not particularly easy, but you can save if you take some time to do it. Shopping around is the most obvious way, but when comparing prices make sure you offer exactly the same information to each.
The National Association of Insurance Commissioners (NAIC) can help you out with average prices, and they can also offer you information on complaints made against specific insurance companies. Some state insurance departments will also give you this information along with typical prices in your state.
Here are some other ways of saving on homeowners insurance, some easy and some that will take a bit of work. However, the potential annual savings are well worth spending some time on. These principles will apply to most forms of insurance.
Increase the Deductible
Most insurance companies offer a standard deductible that you must pay before the insurance company has to pay. Obviously, the higher this figure, the lower the price of your policy. Fundamentally, this can be whatever you want it to be – even zero. However, in that case your monthly payment would likely be extremely high.
The more deductible you agree to, the less your payments will be. Each insurance company is different, but many offer a standard deductible of $250 – $500. If you can pay a higher sum in the event of a claim, then your monthly premium can be significantly reduced. If you agree to pay the first $1,000, then you can reduce the price of your policy by as much as 25% or even more.
Make Your Home More Secure
By fitting good quality locks and a good alarm system to your doors and windows you can significantly reduce your monthly homeowners insurance costs. Carbon monoxide and smoke detectors will also reduce the cost of your insurance.
In fact, if you fit alarms connected to the fire and police departments, and also install a good sprinkler system, you can save upwards of 10%-15% on your monthly payment. Make sure you contact your insurance company first, because the system you install must be on their approved list.
Use the Same Company for Multiple Insurances
Few insurance firms sell only homeowners insurance. By taking life insurance, auto insurance and others from the same company, you can negotiate a significant saving on your homeowners insurance costs. They will know that you could take all of these to another company as bargaining chips, and will not want to take the chance of losing you and even your family – so let them know!
Avoid Claims on your Homeowners Insurance
There are many other ways of saving on homeowners insurance costs, although one of the more important of these is to avoid making small claims. Those who claim for damage that they could easily afford themselves should not complain when their insurance premiums increase – or even if they are ultimately refused insurance.
The best way of saving on homeowners insurance costs is not to make claims! Look upon your insurance in two ways: as being essential for a mortgage if you cannot make a 20% down payment, and to cover you against major damage to your home, such as fire, major theft and other disasters. Not to replace some guttering when it falls down due to snow!