As a homeowner, you are amongt the estimated 64% of Americans that currently own property. Unfortunately, the rate of homeownership has decreased over the recent years, largely due to rising debt, challenges with employment and unemployment, and difficulties in getting approved for mortgages. But when managed properly, owning your own home can bring you oodles of benefits and long-lasting enjoyment.
Once you are in your new home, it is important to look at the various expenses that you have taken on, to ensure you aren't spending more than you need to.
In addition to looking for ways to provide energy savings to reduce costs and better the environment, homeowners should also be looking at their home insurance to ensure that they aren't overpaying.
Below, we have listed eight strategies to lower the cost of your home insurance.
- Perhaps most important is to ensure you have the right level of insurance.
- If you are in a high-risk flood zone, you will likely need flood insurance.
- Take time to review and reconsider your deductible.
- Make sure you have a strong credit rating and a respectable credit score.
- Shop around for insurance coverage every year or two.
- As mentioned above, look into policy consolidation.
- Ensure you and your agent have regular conversations around homeowner's insurance discounts.
- Add a home security system.
Being under-insured can prove catastrophic in the event of an emergency such as home fire or natural disaster. But many Americans pay for far more insurance than is absolutely necessary. Most insurance companies provide you with the opportunity to review your insurance every year, and often they encourage the practice.
Look at coverage for your electronics, jewelry (if covered as part of the homeowner's policy), artwork, furniture, etc. If you have made changes to any of these items, make sure you adjust the policy appropriately.
But it is possible to reduce your home insurance premium by installing proper flood openings, elevating your utilities above ground level, and elevating your home. You can work with a professional landscaper to ensure proper leveling of the ground and to install run-off systems that will divert water away from your home as well. And a good sump pump is always a wise investment, whether you are in a high-risk zone or not, and your insurance company may provide you with a discount if you have one.
A deductible is the amount of out-of-pocket expense that you are responsible for, before the insurance policy kicks in with its share of the payment. If you can take on the potential burden of a higher deductible, you will absolutely save money in your insurance premium.
In fact, you may find that the savings will pay off the amount of the higher deductible after just a few short months or years.
Leveraging FICO or one or more of the three credit bureaus (Experian, Equifax, or TransUnion), be sure to check your credit score monthly or at least once every two months.
If you happen to notice something suspicious or an error, you may report it. It's imperative to stay on top of your credit score & ensure that it is accurate.
The only way you can ensure you are paying a fair rate is by shopping around. But before you jump to the lowest cost provider, make sure you fully research the insurance agency. Make sure you compare and contrast at least three providers before making a change, and ensure you understand and ramifications for making a change.
Often times, you will receive multiple-car discounts and other discounts and credits when you have multiple policies with the same provider.
If your insurance provider offers multiple types of insurance, you may find discounts in having your vehicles, home, jewelry, and other policies all with the same company.
You may be eligibile for alot more above and beyond consolidation. Many insurance companies offer discounts for loyalty, being claims-free for a certain number of years, having a monitored security system, smoke and carbon-monoxide detectors, impact-resistant roofing, and various home improvements.
While this was mentioned earlier, it is important to take time to discuss the various benefits that a home security system can provide. While you will likely save money on your insurance by investing in a security system, know that these systems have a cost of their own.
In addition to installation costs, monthly monitoring tends to average around $35 per month. If you add cameras, shatter sensors, etc., your up-front costs will be higher. However, security systems are an excellent peace of mind. The right system will help protect you and your family from outside intruders and can better catch criminals in the act, making it easier to pursue litigation and get bad people off the street. But this doesn't mean that you shouldn't take other steps to ensure your security.
Staying vigilant, keeping valuable possessions out of direct sight of main floor windows, and keeping your doors locked while away, and at home, should not be overlooked.
It's no doubt that homeowner's insurance is a must-have, and generally, it isn't optional. But you can be wise in searching for the right insurance provider and taking steps to ensure that you have the right coverage for your situation.
Taking the time to have a detailed discussion with a reputable homeowner's insurance agent will also pay off in that they have years of experience in the insurance industry and can provide suggestions on what you need to consider. The right agent will not try to sell you more than they need, and will know that your loyalty and positive referrals will be far more important than damaging their reputation and creating an attrition risk.
As with anything you buy, take time to research the product (in this case, the policy and the provider) by leveraging resources such as the Better Business Bureaus and online reviews, to ensure other customers have been satisfied with their experiences.
