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Monday, 3 October 2011

How can I save money on my home insurance?

For most people, a home is the most substantial investment they'll make in their lives. Insuring a home can be costly, but there are quick and easy ways to save money on your premiums while still ensuring you have the coverage you deserve.

Combine and save
Most companies offer a discount for customers who buy more than one insurance policy. Choosing one insurance provider for your vehicle and home insurance could save you money on your premiums. If your insurance policies are spread out over a number of companies, be sure to call each to determine how much you could save by having all your insurance needs covered by one company.

Shop around
It's always a good idea to shop around. Home insurance premiums fluctuate drastically between companies and it's essential that you get quotes and policy descriptions from as many companies as possible. It's important to note that a cheap insurance plan does not necessarily mean a good insurance plan. If you get a great quote, make sure to ask a lot of questions about the kind of coverage you would receive.

Trim the fat
Most people don't take the time to read and understand their insurance policies. A lot of people pay too much simply because they are paying for services they don't require. For instance, your policy may include flood insurance; if you live in a region of the country that never experiences floods, it may not be worth the money. Of course, you should always be sure of this, because some regions rarely experience floods, but when they do they can be disastrous. You don't want to be left without coverage if disaster hits.

Increase your deductible
The simplest way to reduce your home insurance premium is to increase your deductible. Your deductible is the amount of money you pay to have your loss indemnified. The higher your deductible, the lower your insurance rates will be. The lower your deductible, the higher your monthly rates will be. Keep in mind, however, that if you are at a high risk for a particular loss, you may want to avoid increasing your deductible, since you will have to pay it if you want a loss covered.

Protect your family
A security system can considerably affect your premiums. If an insurance company sees that you've taken steps to significantly reduce the risk of home invasion and theft, you will almost certainly see a reduction in your home insurance premiums. In fact, over a number of years the reduction in premiums will actually pay for the system! Not only that, but you can rest easy knowing your loved ones are safe and your valuables are protected.

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