For most Americans, their home is their biggest investment and something they want to protect. The best way to protect your home, family, possessions, and financial future is to purchase homeowners insurance. However, if you've never owned a home before, you might not know how much coverage you need or how much you should be paying each year.
Here are a few simple ways that you can save big money every year on your homeowners insurance.
Understand What Is Covered by Homeowners Insurance
Before you begin shopping around for homeowners insurance, it's important to understand the basics. Here are a few of the things covered by a standard homeowners insurance policy:
- A standard policy will pay to either repair or replace your home if it is damaged by fire, lightning, hail, and other types of natural disasters. However, it will not cover damage caused by floods or wear and tear that occurs naturally over time.
- Most standard policies will also cover additional structures on your property, including your garage.
- Most standard policies also cover additional living expenses. These are the expenses that occur when your home is being repaired or rebuilt.
Another important aspect of most homeowners insurance policies is liability coverage. For example, if someone is injured on your property, most standard homeowners policies will pay for that individual's medical expenses.
Shop Around for the Best Deal
There are several insurance providers, and the best way to save money on your policy is to comparison shop. Contact several providers and ask them for a basic quote. Asking friends and family members for help is another great way to find a provider that is not only affordable but also reliable.
Don't make your decision based on price alone. Instead, consider the reputation of the provider. Have they been a trusted member of your community for several years? Do they have multiple satisfied customers? Take these points into account when determining which insurance provider is best for your needs and budget.
Ask About Discounts
Did you know that there are several homeowners insurance discounts available? Many of these discounts are available to the average homeowner, and if you take advantage of them, it can save you a lot of money each year. Here are a few of the most common types of homeowners insurance discounts:
- Bundles. One of the most common types of homeowners insurance discounts is the bundle discount. If you purchase homeowners and auto insurance from the same provider, in most cases, they will provide with a break in the price.
- Discounts for retirees. If you are over 55 and retired, many providers will offer a discount. This is because most retirees spend more time at home, which means that it is less likely to be burgled. Also, retirees tend to take better care of their home, which helps retain its value.
- New construction. The owner of a newly constructed home is often eligible for a discount. This is because a new home's components are new, not older and worn.
- Improve your home's security. Installing a security system, purchasing new fire alarms, and installing a sprinkler system are all ways you can improve your home's security. This can help you save money on your homeowners policy.
These are only a handful of the discounts available. If you have more questions, contact an insurance provider for additional help.
Improve Your Credit
From purchasing a car to getting a job or renting an apartment, your credit score will impact several aspects of your financial and personal life. This includes getting a good deal on your homeowners insurance. A poor credit score is often a sign that you are financially irresponsible, and because of this, the insurance provider will often consider you a bad risk.
Improving your credit score prior to obtaining homeowners insurance can help you save money. Luckily, there are several simple things you can do today to begin improving your credit score. For example, check your reports from the three credit bureaus — Experian, Equifax, and TransUnion — and look for any inconsistencies. If you see any mistakes, contact the credit bureau and file a claim.
Paying your bills on time, paying down your credit card balances, and avoiding applying for new lines of credit are great ways you can also improve your credit score.
Raise Your Deductible
The deductible is the amount of money you will need to pay out-of-pocket before your homeowners insurance pays for a repair or replacement. If you have a low deductible, your insurance premiums will be higher. Raising your deductible will result in lower premiums. However, be aware that if your home is damaged, you will need to pay more money out of pocket towards the repairs.
From upgrading your security to raising your deductible, there are several ways you can save big on your homeowners insurance. If you have any further questions, contact the professionals at Crowel Agency, Inc.