With the cost of home insurance premiums rising, more homeowners are looking for ways to trim their insurance costs. If you’ve never had to claim through insurance for your home, it’s tempting to reduce coverage on your policy, or even eliminate specific coverage. But because a home is typically your most significant investment, the best alternative is to try to save money on your home insurance without taking on more risk and uncertainty. Luckily, isure is here to help you! Read on to learn our top tips on how to save on home insurance today.
1. Bundle up
Many people use a different insurance company for each of their policies without thinking. However, this can sometimes be a huge mistake! Bundling your insurance to have multiple policies within the same company can save you up to 15% or more! On top of this, the company may see you as a loyal customer resulting in additional loyalty discounts. Whether it is home and auto, cottage and life insurance or RV and renter’s insurance, having more than one policy with the same company is an incredible way of saving money every year.
2. Pay annually
Paying for your insurance on an annual basis rather than a monthly one is far more beneficial if you want to save! This is because if you pay monthly, insurance companies will add an interest cost to most of your premiums. At the end of the year, this will result in you paying more rather than if you were to pay annually. You also won’t have to worry about paying any administration fees that can sometimes appear when you pay in monthly increments. On top of this, you can even receive a discount of up to 7% of the total cost when paying annually, depending on your provider. Many insurance companies prefer when a customer pays annually, since policy holders that pay monthly cost the insurance company more in manual processing each month.
3. Keep your house in good shape
This next tip is also a great stress-reliever. Keeping your home well-maintained is an excellent way to save yourself money! By performing regular repairs on your home, you will reduce the likelihood of problems snowballing into something more significant. Generally, the worse a problem gets, the more expensive it will be to fix. By inspecting areas, such as your roof or basement, you can find issues before they worsen. This will also mitigate the possibility of needing to file an insurance claim in the future.
4. Don’t make small claims
Everybody knows the importance of having good insurance. However, sometimes it’s best to not use it. This is particularly true when it comes to making smaller claims. Rates will go up for everyone when you make multiple claims. This is because insurance companies end up paying much more. When this happens, the cost will be tacked on to you, the customer. Not only that, but you will also likely lose your claims-free discount! Therefore, it’s best to save yourself money by only claiming large or extensive damages that may happen. Generally speaking, it is recommended to only insure items that are worth under $1,000 so you don’t see a hike in your premiums.
5. Get a monitored alarm system
To many peoples surprise, one of the most prominent claims covered by home insurance is theft! Investing in a better alarm system and having it correctly installed decreases your chances of being robbed drastically. Since home insurance companies are likely dealing with robberies often, they spend a lot of money doing so. This is why many insurers will offer you a discount on your premiums starting at 5-20%! Features that provide video surveillance and Centrally Monitored Security (CMS) are all great investments to make for your home. Not only will you be saving yourself money in the long run, but you will be able to rest easily knowing you and your family are safer.
6. Don’t over-insure your home
Over-insuring your home will be a big player when it comes to an increase in your premiums. This is because the more coverage you have, the higher the cost to uphold. This can happen when an insurance policy covers an amount that exceeds the value at risk. For example, a piece of art that is worth $2,000 that is insured at $50,000 is over-insured. Unfortunately, this is a common occurrence among property owners. This results in them throwing away money that can be used towards new items, home improvements or property management fees. With all this being said, it is very important to make sure you are not under-insuring, either. When doing this, you take on unnecessary additional risk. Speaking to an isure broker can help you determine the right amount of home coverage you need!
7. Keep your options open
The best way to find the best insurance deal for you is to have someone give you a hand with shopping the market. We all know how daunting it can be, since there is a lot of choices out there. With that in mind, it’s also important to not limit your options. One of the best ways of knowing where to start is by contacting an isure insurance broker! We have some of the best customer service, and pride ourselves in helping you find the best coverage.
8. Increase your deductible
We understand that this may sound contradictory, but by increasing your deductible, your premiums will go down! Insurers will give you credits if you are prepared to take a more significant part of the risk while avoiding smaller claims. This is because the insurer will need to cover less repairs or assets if they are needed. This is another place where in the long-run, you will be saving money! This can then be put towards newer items or house repairs in future. However, before doing this, you should consider the deductible amount that you will be able to afford in case a claim does happen. At the end of the day, you will be the one paying out-of-pocket.
9. Embrace your age
Nobody likes to grow older, but there are many perks to doing so, insurance-wise! Older clients, particularly those over 50, may receive insurance discounts! This is because people in this age bracket are seen to be more financially stable, making them better and more successful homeowners. It’s always recommended to talk to an insurance broker once you hit the age of 50, as you can save yourself some money. This goes for other types of insurance as well, such as auto insurance.
In conclusion, as a homeowner, you must insure your house for replacement costs. That way, if severe damage ever happens, you will have adequate coverage. On top of this, money saved can be put towards new items to insure, as well as keep your house in great condition! It’s also a good idea to keep your home insurance current by reporting any material changes or upgrades to your homes. If you have questions about your home insurance policy, or perhaps you’re looking for adequate coverage, contact us to speak with one of our isure brokers and start saving money on home insurance today.