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Effective Ways to Reduce Rates You Pay for Homeowner’s Insurance

Effective Ways to Reduce Rates You Pay for Homeowner’s Insurance Posted on July 30, 2011Leave a comment

Trying to plan the family’s budget around the high cost of homeowner’s insurance can seem like an impossible task for a lot of people. In a lot of situations, having to pay for insurance premiums from a budget that simply is not there can often put consumers in a catch 22 situation.

There are some steps that can be taken however to cut the high cost of homeowner’s insurance, making it much easier for consumers to save money. Below is a list of effective ways to decrease the crunch that costly homeowner’s insurance is putting on your finances.

  • If floater insurance has been taken out in the past for prized possessions that are not covered under your standard policy, it may be time to review depreciation that may have occurred on these items. Oftentimes homeowners will continue paying extra fees for floater insurance on valuable items that have depreciated and are no longer worth the additional amount of money they are paying. This mistake can easily be avoided by periodically checking the actual value of items you have covered under this type of insurance.

  • Find agents that provide credit for burglar and fire alarms. There are several different insurance carriers that provide their customers with a credit for having centrally monitored burglar and fire alarms installed. In some cases this is a credit that can ultimately save the homeowner a large amount of cash in the long run. Some of the other items that may also result in a credit include dead bolts, smoke alarms and even sprinkler systems that have been installed on your residence.

  • Taking the steps required to clean up the status of your credit and keep it that way can ultimately save a person a ton of money. Discounts are offered by more and more agents each year to homeowners that have good credit. Many people are often amazed at just how much money they can save by paying close attention to the condition of their credit.

  • Selecting higher deductible amounts can save a large amount of money. While paying a $500 deductible may in fact be what most insurance agents suggest to their clients, increasing this amount to $1,000 can actually save as much on premium costs as 25%. There is a slight risk in making this type of decision, which means you may want to think about putting extra money up in the event that the unexpected were to occur.

  • Compare rates and coverage being offered. It is wise to obtain several different quotes from a wide range of different insurance companies when it comes time to insure your home. The more companies you request a quote from, the higher the likelihood you will be able to find a good deal. There are some agents that represent quite a few companies at the same time and are most often able to provide homeowners with the lowest rates for the coverage received.

It may take some time to investigate all the way available to save money on premiums paid for the coverage of your home. When it helps to improve your finances, you will likely agree it is well worth the effort.

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