One of the largest investments you’ll likely ever make is your home. Protecting it has to be a top priority, and due to that you should do everything you can to ensure that you have the best insurance you can afford that covers what you need it to cover.
Here are some tips to keep in mind when doing your shopping. Stick to these simple but effective rules and you’ll have peace of mind that you’re getting the best deal possible.
- Compare Several Companies – High pressure sales tactics are common in the insurance industry, but you have to resist it so that you can check out more than one company for your insurance needs. Prices, customer service, and coverage vary greatly among companies.
- Choose a Higher Deductible – Higher deductibles enable you to pay less on your premium payments each month. It’s a quick way to lower costs. Ask your insurance agent to compare premiums and deductibles so that you can make the right decision for your family.
- Consider Actual Rebuilding Costs – Even if your entire home and all its contents was wiped off the face of the earth, you still own the land. Get an assessment to find out how much the land is worth and deduct that from the cost of a rebuild to get a more accurate picture of what it will cost to rebuild.
- Bundle Insurance – When you buy more than one kind of insurance from a company, you can usually get a substantial savings. Many companies that are also banks provide other financial offerings, too. Check out everything to find out if it’s good enough for a one-stop shop.
- Update Your Home – If your home is older, it’s important to ask your insurance agent if you can do things to your home to lower the cost of insuring it like storm shutters, shelters and other features.
- Improve Home Security – Fire systems, carbon monoxide systems, and even burglary systems might help lower the cost of your insurance premiums. Your insurance agent can make recommendations for you.
- Ask for Other Discounts – There are often discounts you can ask about such as senior, job related, bundling, and other types of discounts that they might not mention to you without asking.
- Keep Your Credit Spotless – If you have poor credit, you’re going to pay more for insurance as well as other types of products. Do what you can to keep your credit rating high to avoid paying more for necessities like insurance.
- Become a Long-Term Customer – The longer you stick with a company, the more discounts you will get. Some companies even provide refunds for long-term customers. Ask about programs like this to help you make a choice.
- Review Your Policies Yearly – People find it helpful to review their insurance policies at least yearly to ensure that they’re neither overly covered nor under covered. Many people find it helpful to do a review each year during their birth month so that it becomes a routine.
Homeowner’s insurance is a necessity. You never know when something will happen – be it “an act of God” or an accident such as a house fire. Even someone falling down inside your house can result in huge bills for you to pay. Being covered for these contingencies can give you peace of mind now and in the future.