If you’re like most people your home is the largest and most valuable asset you own. And it provides more than just a source of equity and shelter from the elements. It contains years or even decades full of memories. Just look around and you’ll see reminders of all sorts of events both large and small. The living room where your little girl took her first steps. The mantle where she hit her head and gave everyone an awful scare. The lines on the door frame where you measured her growth. These are memories that can not be replaced.
Given your home’s importance, it is vital that you have enough homeowner’s insurance to repair or rebuild your home in case of disaster. Being underinsured can lead to financial ruin.
Of course, you also don’t want to be paying more for insurance than is necessary. Rates can vary wildly from one insurance company to another so shopping around and comparing rates can save you hundreds of dollars per year. Compare at least three or four insurance carriers before making a choice.
More ways to cut insurance costs
Besides shopping around for the carrier with the best coverage for the lowest premium, some other suggestions for cutting your insurance costs include:
Consider buying both your homeowner’s and auto insurance from the same company. Many companies offer discounts if you purchase more than one policy from them. This will lower both insurance policies so you’ll save double!
Don’t bother filing small claims for minor damage. A handful of small claims may lead your insurance company to consider you a higher risk and increase your rates. Just take care of any minor repairs that come up yourself. Save insurance for the big ticket repairs.
Boost your deductible. If you are going to pay for small repairs yourself anyway you might as well raise your deductible too. The typical deductible is $500. If you can afford to raise it to $1000, you can expect to see a significant drop in your premium.
Ask your insurance carrier about other discounts they offer. Many will give discounts if you have smoke detectors, fire extinguishers, security systems, or deadbolts on external doors.
Keep your credit report clean. It has been somewhat controversial, but some insurance companies have started using credit scores as a factor in determining rates. Miss a few credit card payments and you may find your insurance rates increased.