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How Can I Save Money On My Property Insurance Policy?
Home » Insurance » Property Insurance » How Can I Save Money On My Property Insurance Policy?Most lenders require you to have property insurance. But just because it is required does not mean that all policies cost the same amount. There are several ways you can save money on your property insurance.
Only buy the coverage you need. If you don't live in a flood prone area, you may not need costly flood insurance. If your house is close to a fire station, you may be charged less on your policy. You may also have valuables, appliances and electronics that will lose their value over time. That is why it is important to compare the limits in your policy to the value of your possessions at least once a year. You will want your policy to cover any major purchases or additions to your home, but you don't want to spend money for coverage you don't need.
Most insurance companies that sell insurance policies other than property insurance will give consumers discounts for buying more than one product from them. If your auto insurance company also sells property insurance, you could get a discount of up to 15 percent off your premium for buying both policies.
Raise your deductible. Each $500 you raise your deductible will increase your savings. Most deductibles start at $250, so if you raise your deductible from $250 to $1,000, you may be able to save up to 25 percent. But you must remember that your deductible is the amount that comes out of your pocket when a loss occurs before your insurance company starts to pay, so make sure you can afford your deductible in case you ever have to report a loss.
You could also receive a discount on many other items such as:
Strong home security in the form of security systems, alarms, gated communities and double locks on both doors.
Seniors often receive discounts on their property insurance if they are over 55 and retired.
New homes are usually charged lower rates than older homes in the same price range because a new home's electrical, heating and plumbing systems and overall structures are likely to be in better shape than those of an older home.
Non-smokers usually get reduced rates on their property insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates because smoking accounts for over 20,000 residential fires in the United States a year. Insurers often charge lower premiums to smoke-free households.
The number one way to save money on your property insurance is to shop around. If you have just purchased or are about to purchase a new home, get several quotes before choosing the company you want to give your business to. Rates can vary by hundreds of dollars from company to company. This also applies to current homeowners. Your current company could be overcharging you and it makes sense to compare rates and think about switching companies if you can save a significant amount.
But don't consider price alone. The company you select should offer both a fair price and excellent service. Quality service may cost more, but you are buying property insurance in case you need to make a claim, so it is important to consider the company's reputation.
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