Money is a resource that unfortunately gets stretched a little too thin during inopportune times. Saving money when you purchase a home owner’s insurance policy is important. If you are not careful though, you could very well end up spending far more money than you need to in the long run due to oversight. Here are some things to avoid doing if you want to save money on home owner’s insurance:
Not Getting Multiple Quotes
It is in your best interest to shop around when looking to obtain home owner’s insurance, or any kind of insurance for that matter. If you go with the first quote that you receive, you will not know if there is a better deal out there for you. You will not know if what you are paying each month is the best deal, a standard deal, or actually a completely terrible one. It may take a bit of time to do all this research, but in the end, it will save you a ton of money. You will be grateful for having taken the time and effort to do so.
Going with Lower Deductibles
Going with a policy that has a lower deductible may seem like a rather enticing option, but it’s not necessarily as good of an idea as you may think it would be. The reason for this is that even though you will have to come up with more money if you do need to file a claim, you will end up having a lower monthly premium. Having a deductible that is set between $500 to $1,000 can save you up to 25% on your premium, thus leaving you with more money to use or put away in case you do need to file a claim and have a deductible to pay.
Not Asking About Discounts
If you want to save even more money on your home owner’s insurance every month, you will definitely need to ask your insurance company about any discounts they offer. You could receive savings that you may not have even known you could qualify for.
- Age Discount: Folks who are over the age of 55 and retired are home more often, which means that they are less likely to become victims of thievery. Some companies will offer a senior discount, which could be as much as 10%.
- Water Sensor Discount: Water sensors detect leaks in your home before they turn into full-on floods. You could buy active or passive sensors at any large home improvement shop. Once they have been easily installed, you may qualify to receive a discount up to 10%.
- Claims-Free Discount: If you do not make any home owners insurance claims for 10 years, you could end up saving up to 20%. Naturally, this will mean that you must commit yourself to one insurance company during this stretch of time and not make any claims. This discount is an option some people receive.
- Homeowner’s Association Discount: If you are living in a neighborhood that has a Home Owner’s Association (HOA), you could receive a discount of 5% to 10% due to insurers seeing these communities as less of a risk.
- Nonsmoker Discount: If you are a smoker, you will end up paying more for your home owner’s insurance due to the increased risk of a fire. If you are a nonsmoker, you could qualify for a special discount worth up to 15%.
- Gated Community Discount: If your home is located inside a gated community, then you may receive a discount, as it is less likely to be robbed. The average discount will usually range from 5% to 20%.
Keeping Policies Separate
Bundling your insurance policies is another great way for you to save money on your home owners insurance every month. By keeping your policies (such as home, life, auto, boat, etc.) separate, you are missing out on some serious discounts. Depending on what insurer you go with, you could save anywhere between 7%-20%. Asking about home owners and auto insurance simultaneously could end up making the shopping process take longer, but it is another thing for which you will thank yourself in the long run.
Not Making Sure You Have the Right Amount of Coverage
It is important to make sure you have the right amount of coverage when obtaining a home owners insurance policy. You do not want to have too much or too little. If you have too much coverage, you could be shelling out extra money every month for coverage you do not need. If you have too little coverage, you could end up having to come up with a lot more money on your own if something happens.