Contrary to what you may have heard, it is possible to save money on your home insurance premiums. By employing a combination of smart shopping and cashing in on certain home insurance discounts, you could stand to save a tidy sum.
- Raise your deductible limits. This tactic works across the board with all coverage types, from medical to auto to home insurance. In effect, you pay extra every month (or every quarter, or every year, depending on your payment schedule) for the luxury of not having to pay much out of pocket when it comes time to use your insurance policy. But as long as you have self-discipline and a savings account, you can take the money that you would have been paying out on a higher monthly payment and put it towards an emergency fund to cover your deductible.
- Pay your premiums in a single lump sum. Some providers offer home insurance discounts if you pay for your yearly coverage up front, rather than spreading it out in monthly installments. Depending on your insurance provider, you could also save a few extra dollars by scheduling automatic electronic payments.
- Buy smart. Keep home insurance premiums front and center to all of your house buying decisions. Don’t be afraid to make your final pick based on which one will cost you less to insure. This is a smart approach. You might not think that you can afford to buy a new home with all new electrical and plumbing, but you could actually end up saving money in the long run when you consider the fact that these added bonuses make your home easier to insure.
- Choose your location carefully. Depending on circumstances out of your control, you may not be able to pick and choose what city you’re going to ultimately live in. But if you have the luxury of being able to choose your community, take a serious look into what burglary statistics are and make your decision based on which community will be the safest for you and your possessions. Crime data and other demographic information is carefully considered by insurance companies when setting your home insurance premiums.
- Install a burglar alarm system. Having the added security of a burglar alarm not only helps you sleep better at night, but it can also cut down on the cost of your home insurance dramatically. Insurance companies see homes with sophisticated alarm systems as far less likely to be broken into or vandalized, lowering payment risk to replace stolen or damaged property.
- Combine your home and auto insurance. If you’ve got a home and a car, it makes no sense to insure them through different providers. Insurance companies offer deep discounts to customers who carry both vehicle and home insurance.