As a homeowner, you can’t avoid the cost of homeowners insurance. However, what you end up paying for insurance will vary depending on where you live, the age of your home, and its condition. The average a homeowner can expect to pay around $1200 an annum. It certainly comes across as a significant expense, but look at it this way, if something happens to your home, the insurer will reimburse you. Not to mention that if you have a mortgage, your mortgage company will require that you maintain a certain level of insurance.
While you need to pay for homeowners’ insurance, you can take steps to try and pay the least amount.
Do Your Research
Even though your mortgage lender will require that you get home insurance and recommend an insurer, we advise you to shop around. Get a few quotes from insurers in your area. An insurance agent can also help you choose the best homeowners insurance based on price.
Generally, you will want to choose an insurance company with a strong rating from agencies like Moody’s and AM Best.
Talk To The Insurance Agent Every Year
Now before you start looking at cutting costs, it is essential to know what your policy covers. Many insurers have worked hard to make their contracts easier to understand, but those renewal documents can often be confusing. Though start with reading the deceleration page, which is a summary of everything that the product covers. Then browse through the exclusions page to see what the policiy isn’t going to cover.
Get Every Discount Out There
Insurance companies tend to offer many discounts for everything from paying the annual premium to offering a discount for paying three months upfront. However, people with a newly constructed home can get up to a 35% discount. You can save up to 19% by bundling your auto and home policies with the same insurance provider.
Always make sure that you are getting all the discounts that you qualify for. For instance, if you upgraded the roof or the windows in your home in the past year, maybe installed fire extinguishers, and add solar panels, you could shave off a few more dollars in premiums.
Raise the Deductible
Usually, the higher your deductible, the less you will end up paying for insurance premiums. So, boosting your premiums to around $1000 could help you save up to 25%. When you choose what to pay for premiums, make sure that you consider how much repairs generally cost. Also, you will want to avoid making small claims which will prevent your premiums from going up.
However, we will caution you against having a much higher deductible than what you can pay out of pocket. Ideally, you will also want an emergency fund that helps you withstand the hit, but ask your agent how much your premiums will change if you choose to raise your deductible.
Conclusion
The one thing we always tell homeowners is to avoid cheap insurance. You always want to buy good insurance, but try to pay the least for it.
Give us a call today to get multiple quotes from different providers.
