Do you hesitate to buy a home insurance policy as you think it is costly or think you're paying quite a lump sum amount on your homeowners insurance? If yes, then read the following tips to find out how you can reduce the cost of your home insurance policy without compromising on the required coverage.
- Compare policies before buying one - Like any other insurance policies, you should also comparison shop while buying home insurance. Even if you have a home insurance policy, shop around once a year to find out whether or not you're paying more on your coverage. And, if you decide to insure your home and its properties under a new policy, make sure your new policy comes into effect before you drop your old one.
- Install safety features in your home - The premium of your policy can get reduced to some extent if you install a burglary alarm at your house. Similarly, installing fire extinguisher, deadbolt lock, security alarm, etc. will help towards getting an affordable home insurance policy.
- Do not hesitate to ask for discounts - There is no harm in asking; you might not get a discount, even if you're eligible for, if you don't ask for it. So, ask your insurer if you qualify for senior citizen discounts, multiple policy discounts, nonsmoker discounts, etc., while shopping around for a suitable homeowners insurance policy.
- Upgrade your home if required - The insurance companies will offer you a discount if you upgrade your house to make it weather resistant. So, ask from your insurer what features will help reduce the cost of the policy and decide whether or not it makes sense to upgrade your home to install those features.
- Review insurance riders every year - Every year or when your policy is up for renewal, review your policy to find out whether or not you're paying extra premium for the coverage you no longer require. You might had taken coverage for an expensive item which you don't require or you've sold that. If this is the case, drop that coverage to reduce the cost of your policy.
- Have a proof of the insured things with yourself - Often people fail to show an inventory while making a claim for the coverage. The insurance company is not liable to pay to replace the things if you don't have a proof. So, what you can do is take pictures of the valuable items at your home, keep a copy of them and also mail them to a friend or a family member of yours who stays far. This will help you get the required coverage as you'd be able to show the proof if you need.
- Raise your deductible - One of the most important tipsshould be to raise your deductible. You can reduce the premium cost significantly once you raise the deductible. However, while doing so, make sure you have an emergency fund so that you can use it to pay the deductible, if required.
Make sure you have liability coverage as otherwise you might have to bear the cost if a person sues you for falling down at your property. Also, while buying a home insurance policy, go for replacement value coverage or RVC instead of opting for actual value coverage or AVC. If you opt for RVC, you'll be eligible for the replacement coverage instead of getting only the depreciated value of the items(s). So, review the terms and conditions in your policy carefully so that you purchase the required coverage and have sound knowledge about your policy, which will help you in need.