The feeling of pride and satisfaction that comes with owning a house cannot be described in words.
But with great things come great responsibility. And that’s why you must have your house insured.
However, once you head out to buy insurance, you will realize how expensive they are. Even if you already have home insurance, you would be aware of how its cost continues to increase over the years. This is because as your home and property gain value, the cost to repair or rebuild it also increases.
But that doesn’t mean that you avoid home insurance.
What you should do instead is take certain measures and make some investments to continue benefitting from insurance while keeping the costs under control.
Here are a few tips that can help you lower your homeowner’s insurance costs.
Raise the deductible
The deductible is the amount of money that you pay for covering a loss before your insurer starts to pay. It is the risk you agree to accept before your insurance company helps you out.
So, a higher deductible means that you will pay a lower premium. Therefore, consider increasing your deductible, but be realistic.
You shouldn’t raise it so high that you are unable to afford critical repairs because you can’t afford them. A deductible of around $500 – $1,000 is an ideal amount and can help you save about 25% on home insurance.
Add some reinforcements
Making a few improvements to your house and taking some precautionary measures to reduce the risk of accidents can significantly lower your insurance costs.
For instance, reinforce your roof, install smoke detectors, update basic home utilities or add a power surge protector. If you live in a disaster-prone area, then take appropriate precautions to decrease the damage that can be caused under such circumstances. For example, if storms are common in your region, then add storm shutters to your house.
This may increase your expenses initially, but it is a long-term investment that will reduce insurance costs and will prove fruitful in the coming years.
Leave out the land value
Disaster or accidents can damage the structure of your house, but it is highly unlikely that they will spoil the land itself.
Hence, when buying home insurance, exclude the value of land and include the value of the house only.
You can avail discounts on insurance if you have some basic safety and security systems installed in your house.
Dead-bolt locks, fire alarm, and burglar alarm might entitle you to a reduction of about 15% in your homeowner’s insurance costs. However, this varies from company to company so consult your insurer before taking such measures.
The rule of three
It would take time and effort but refer to at least three insurance companies before you finally buy an insurance policy.
This gives you an idea of the average amount you should pay and helps you make an informed decision.
Ask suggestions from friends and family for the best insurance provider. You can also search the web or browse the yellow pages.
Home insurance is a not a luxury. It is a necessity.
By following these tips, you can make the most out of your homeowner’s insurance at an affordable price.