6 Effective Ways to Reduce the Cost of Your Homeowners Insurance
Save money and still keep your much-needed insurance coverage. Here are six ways to help you
save money and minimize the cost of your homeowners insurance premium.
Deductible
When you file for a claim, the deductible is the amount you are supposed to pay right off your
pocket before your insurer pitches in. If your deductible is a percentage of your property’s
insured value and not a flat rate, you might want to increase it in order to lower your overall
home insurance rate. You might also want to examine the rate differences across the various
levels of deductibles, so you can choose the most cost-effective insurance plan.
Discount
Cut corners by investigating ways to get a discounted premium. Ask your car or life insurance
company if they offer discounts should you decide on getting your home insurance from them. If
you are a senior citizen or have an excellent credit score, inquire if you are entitled to a discount.
You may be a member of a professional association and are entitled to perks in the form of
discounted premiums. Research and ask away.
Dogs, Swimming Pools, and Trampolines
Dogs, swimming pools, and trampolines can all lend a fun, easygoing atmosphere in your home.
But they can increase your insurance rate.
This does not mean foregoing having a dog as part of your household. The emotional benefits of
owning a dog can outweigh a potentially pricey premium. The good news is that there are
dog-friendly homeowners insurance companies out there.
The key is to keep your dog from biting someone. Proper training and socialization for your pet
can prevent dog bites. And don’t forget to exercise common sense: be responsible and supervise
when friends or relatives come over for a visit and mingle with your dog. When there are kids in
your home, instruct them firmly to never tease or startle the dog. For toddlers, it is best to never
leave them alone with your dog.
Depending on your insurance policy, injuries resulting from the use of trampolines may or may
not be covered. Some home insurance companies cover trampolines as long as a safety net is
installed and a fenced enclosure of a specified height surrounds it. If there’s an associated jump
in your premium, just use your discretion whether or not a backyard trampoline is worth the
liability.
Your backyard swimming pool can increase your insurance rate. If it comes with a slide and a
diving board, you can even be denied coverage. Discuss your options with the insurance company and work out how best you can lower your premium.
Disasters
It is possible to lower the cost of your premium by making steps to turn your home into a
disaster-resistant abode. Talk to your insurance agent about this. Some insurance companies trim
their premiums if storm shutters are added, the roof is reinforced, the electrical wiring system is
modernized, and the property is retrofitted against earthquakes.
Your insurer may also look more kindly and lower your premium if you install safety features in
your home. Burglar and fire alarms, deadbolts, smoke detectors, surge protectors, and high-tech
sprinkler systems can net you a discounted premium.
Claims
Your insurance is intended to help you recover fast from a major loss. If you file small claims
here and there, you are driving up your insurance rates. For minor damages whose repair costs
are something you can afford to pay on your own, think twice before making a claim.
Nonessentials
Do not waste your money on unneeded coverage. Review your floaters, if you have them in your
insurance policy. A floater is intended to insure the full value of an item typically not covered by
a standard home insurance policy. Floaters normally involve rare artworks and expensive
jewelry. If your floater is an expensive designer piece of clothing, for example, which has
depreciated in the past few years, you might want to either lower its insured value or cancel the
coverage for it.
When choosing a homeowners insurance plan, take care not to have excessive coverage for your
rebuilding cost. For instance, you don’t need to pay to have the land under your home insured
from fire, theft, or windstorm. It is a piece of ground and is not at risk from the aforementioned
hazards. Insure only the value of your house.
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