Tips to Save Money When Shopping for Home Insurance

A famous proverb says that my home is my castle. It’s true. As surely as your home is yet another thing that gets you seriously exposed to liability risks. Your visitor falls from a staircase in your home – you’re responsible. You throw a yard party and someone gets hurt in your pool – you’re responsible. Your hyperactive doggy breaks free from home and ruins your neighbor’s lawn – you’re responsible.

Home insurance may be virtually a life-saver when it comes to covering medical or damage bills of those who have suffered on your property or due to your homeowner’s negligence. However, like all things helpful, home insurance does come at a cost. Here is a shortlist of nifty tips on saving good dollars when shopping for home insurance.

Can you go without homeowner’s insurance?

Though home insurance is not mandated by Law, it is in your best interests to invest in it. Such a policy will protect not only your home’s interior and exterior, but often covers many other items, both inside and outside the physical building of your home. From your personal belongings to the garage in your yard, or even treatment expenses of your guests if they get harmed while visiting you, a home insurance policy renders financial protection for a host of incidents.

Typically, a homeowner’s policy offers the following benefits:

• Dwelling coverage – covers the physical structure of your residential property, as well as attached constructions like a terrace, a deck, or a garage.
• Other structures coverage – indemnifies repair or replacement of detached constructions that are also a part of your property, such as a fence or a shed.
• Personal property coverage – compensates for the contents inside the physical structure of your home, for example, furniture, major appliances, and electronic gadgets if they are stolen or damaged following a covered peril.
• Personal liability coverage – pays for medical expenses, property losses, and legal bills of those individuals who suffered while being inside or around your property as well as when you are held liable as a homeowner.
• Temporary living expenses coverage – if you cannot live in your house or condo after a covered incident (fire or explosion, for example), your homeowner’s policy will reimburse expenditures on temporary living in a hotel or rental accommodation.

Sometimes, you cannot go without it, for example, when you have a mortgage. Your lender may require you to have a certain level of property coverage before agreeing to finance your mortgage.

Despite offering undeniable benefits, keeping home insurance may take a heavy toll on your family budget. The price of such policies varies dramatically by region and company as well as the condition and market value of your real estate can be the factors pushing premiums up. Here is what you can do to keep your homeowner’s insurance bills low.

Tips on trimming the cost of home insurance

Do your due diligence

Saving money is a type of art and requires some time and research. You can ask your friends or workmates for recommendations for home insurance companies, scouting out about their experience with their provider.

You can also contact the local department of insurance to find out how many consumer complaints the insurer of your interest receives annually. Generally, this information is publicly available. Also, check out whether the prospective dealer has a good reputation with leading rating agencies like BBB or S&P. Real user reviews on platforms like Trust Pilot can also tip the scale in your decision-making.

Get quotes from 3-5 companies that appeal to you most, yet don’t compare prices alone. Try to compare a price-per-benefit ratio to know for sure which protections you will enjoy for your money.

Consider a higher deductible

A deductible is a particular sum paid out of your pocket before your policy kicks in. Opting for a greater deductible may save you from high premium charges. If natural catastrophes are typical in your area (such as floods or hails), your home insurance plan may set a separate deductible for damages resulting from these disasters, so make sure you take this into consideration when deciding to increase your standard home insurance deductible.

Buy policies from the same company

Many carriers offer multi-policy discounts if you buy several insurance products from them. For instance, you may receive 25% off your home insurance premiums if you buy auto liability or umbrella policies from the same provider. To get the best deal, make sure that the combined price from one company is lower than buying separate policies from different carriers.

Enhance your home

A strong, well-kept dwelling without significant maintenance issues is a key to lower premiums on home insurance. Storm shutters, a strong roof, windows with laminated security glass are effective measures in cutting premium fees. Keeping your HVAC, plumbing, and electrical systems modernized and cared for can also reduce the risk of incidents, thus boosting your credibility in the carrier’s eyes. Outfitting your residential property with security gizmos like fire alarms, smoke detectors, and anti-theft systems may make you eligible for a hefty discount, too.

Claim your discounts

Never be shy to ask a carrier for a discount, no matter what object you are going to cover. Many companies offer generous discounts for responsible drivers, seniors, loyal clients, and members of particular organizations. Many professional and business groups allow participants to buy homeowner’s coverage at a fraction of a market price. Sometimes employers include cheap home insurance plans into a workplace benefits package. Never be skeptical about group home insurance – sometimes it may unleash greater value than an individual policy.

Review your insurance plan periodically

To stay on top of your premiums, you want to review your policy plan to make sure it offers adequate coverage based on your current life situation. You buy new stuff for your home as well as get rid of the older one. Your policy must cover major belongings and additions you make to your home throughout your life. Yet, make sure you do not waste dollars on coverage that you no longer need. For instance, if you have sold your expensive silverware at Etsy, you can exclude this floater from your main policy and relish lower premiums.

You need to revise your homeowner’s insurance plan at least once in three years. Your life situation changes while the markets get more competitive and try to attract clients at any means, including by offering moderate rates on popular insurance products. You need to keep your insurance up to date because you never know when you will need it.