Home insurance is an important part of home ownership as owning a home is quite different from living in an apartment. The responsibility of keeping it up to date and taking care of the damages overtime fall on your shoulders and it is up to you to properly insure against potential problems that might occur throughout your life. While shopping for insurance, people imagine spending loads of money but proper home owners insurance doesn’t require you to spend ridiculous amounts. Here are a few tips on how to get the right coverage.
Taking the time to shop around and looking into as many insurance companies as possible is one of the best ways to save extra money on the cost of covering a home. Insurance companies operate just like any other business. Though the products offered are the same as everyone else, the price is not. When shopping around, always remember to compare like-coverage. That means you should make sure all of the coverage options are the same. A better way to save money would be to shop locally. Visit your local insurance agency and talk to a representative in person for the best possible coverage.
List the Coverage Needs:
Making a list of the appropriate coverage needs helps determine if something is possible to remove and thus save money. Let’s take a look at basic perils for example. Volcanic eruption is one of the perils covered by homeowner’s insurance but if you live nowhere near an active volcano, you don’t need that coverage so taking that off could save you some money. Once the list is complete, discuss the options for removing elements in the coverage that are unnecessary and find out how much less it will cost per month.
Increase the Deductible:
One of the best ways to lower the amount paid out each month is offering to pay a higher deductible. Paying more if something happens is ultimately less expensive than paying out a large monthly bill when it might be years or an entire lifetime before insurance is necessary.
Many insurance companies nowadays offer multiline policies which means you can add other insurance coverages, such as auto insurance, with your home insurance policy. Combining the coverage so that the car and home are both insured under the same provider results in dramatic discounts on both types of coverage. It saves money and makes it easier to keep track of the bills. You can add motorcycle coverage to it too but not every company offers a discount for that so check in with your local agent for more information.
Lower the Risk of Disasters to the Home:
Fire, flooding and natural disasters are always a factor in the insurance coverage. Limiting the risk of disaster not only helps provide peace of mind against potential disasters, it also might result in special discounts on insurance. Most companies do offer discounts based on how frequently you update your home such as updating plumbing to prevent flood damage or maintaining old wire sockets to prevent fire. The less prone your house is to disaster, the more you will save.
Insurance is an important thing to have. Think of it like coffee. You don’t always need it but it’s good to have it :)
Source: Insurance Blog