Home insurance can be very expensive, especially when you add all of the upgrades that you’ve made to your home over the years. Luckily, there are several steps you can take to reduce your home insurance costs without sacrificing your protection in case something goes wrong at your house. Check out these 10 ways to save money on home insurance.
1- Reassess your home inventory
One of the best ways to save money on home insurance is to reassess your home inventory. This can help you determine if you have too much or too little coverage. Plus, it’s a good way to keep track of your belongings in case of an emergency.
2- Shop around for insurers
The best way to save money on home insurance is to shop around and compare rates from different insurers. This can be done easily online by getting quotes from multiple companies. Make sure to compare apples to apples, though, and look at the coverage each company is offering before making a decision.
3- Buy insurance cover only for high-value items
Home insurance isn’t required by law, but if you have a mortgage, your lender will insist you have it. Even if you don’t have a mortgage, home insurance gives you financial protection against disasters such as fires, storms, and theft. The cost of home insurance depends on the value of your home and contents, where you live and the level of cover you need. Here are 10 ways to help reduce the cost of your home insurance
4- Buy supplemental insurance for liability
You can purchase supplemental insurance for liability in order to save money on your home insurance. This type of insurance will protect you in the event that someone is injured while on your property. You can also save money by bundling your home and auto insurance policies together. Another way to save is by increasing your deductible. This will lower your monthly premium, but you will have to pay more out of pocket if you need to file a claim.
5- Review your policy’s coverage limits regularly
Many people don’t realize that their home insurance policy has coverage limits. These limits are the maximum amount that your insurer will pay out for a covered claim. If the cost of damages exceeds your coverage limit, you’ll have to pay the difference out of pocket. That’s why it’s important to review your policy’s coverage limits regularly and make sure they’re adequate.
6- Switch from whole life to term life insurance
One of the best ways to save money on your home insurance policy is to switch from a whole life insurance policy to a term life insurance policy. Term life insurance is much cheaper than whole life insurance, and it will still provide you with the financial protection you need in the event of your death. Plus, if you have a term life insurance policy, you can always convert it to a whole life policy later on down the road if you so choose.
7- Bump up your deductible. You will save a lot!
A deductible is the amount of money you have to pay out-of-pocket before your insurance company steps in to cover the rest. By increasing your deductible from, say, $500 to $1,000, you could save up to 25% on your annual premium. Just make sure you have enough money set aside to cover the higher deductible in case something happens.
8- Decrease your age bracket
One way to save money on your home insurance premiums is by decreasing your age bracket. If you’re currently in the 25-35 age bracket, see if you can get a quote for the 20-25 age bracket. You may be surprised at how much you can save.
9- Use an independent agent instead of an in-house insurer
An independent agent can help you find the best deal on home insurance by shopping around with different companies. In-house insurers are captive agents, meaning they can only sell you their company’s products.
10- Install fire alarms and get carbon monoxide detectors
- Install fire alarms on every level of your home.
- Get carbon monoxide detectors for each level of your home.
- Test your alarms regularly and change the batteries as needed.