A home is likely the most valuable thing you own right now. It only makes sense to get the right homeowners insurance and review it periodically to make sure your place is covered adequately, including any upgrades and all your belongings. Below are some tips that can help you get maximum coverage for less right now.
- Check what is on offer.
A few hours online can tell you what is currently on offer. Check various policies and do not just jump at the lowest rate you find. A good place to start is the website of the National Association of Insurance Commissioners. Here, you will find information about insurers, including closed insurance complaints, licensing information, and financial data that can aid in making informed decisions.
- Increase your deductible.
How much are you willing to pay to cover damages? If you can pay more, your insurance will cost less. For example, raising your deductible from $500 to $1,000 could slash your premium by 25%. Of course, you have to consider your risk tolerance and the shape of your financial house to make raising your deductible worth it.
- See if you can bundle policies.
Some insurance companies offer multi-line discounts. Ask your providers what they can do for you if, for example, you buy both your homeowners insurance and auto insurance from them.
- Do not overinsure your home.
It is a mistake to insure your house for as much money as you paid for it, simply because this total includes the price of the land and not just your home. Ideally, what you want out of your homeowners insurance is enough coverage to rebuild your home from scratch if it burns down or is blown off its foundation by a tornado or hurricane. Your land will stay as is so no need to add its cost to the premium. Just be careful and do not underinsure!
- Look for discounts.
Discounts vary by insurance company. Request the full list of discounts they offer and see where you qualify. You can get price breaks if your home has extra protection against fire or theft, if nobody living there smokes, or if you have never filed a claim for a certain number of years. Make sure you get the discount that you deserve!