Everything seems to be getting more expensive these days, and with all the costs of running a household, home insurance just seems like one more thing to try and squeeze on the list of things you can’t afford.
But fear not! The reality is that home insurance on a budget IS possible, and we’ll show you how right now.
The price that you pay for your home insurance can vary hundreds of dollars per plan, depending on the company you’re with and what is covered on the plan. So, in order to really save as much as possible when buying home insurance, it’s important to really look into what you’re paying for and how to adjust it.
First, investigate. Maybe it’ll take a little time, but you can save a good sum of money if you’ll just do it. By simply calling around to different companies for quotes, or asking friends what company they’re with can lead to some surprising discoveries. You can also look at online consumer guides or find quotes online. As mentioned, it will take time, but it will be worth it!
Second, raise your deductible. A deductible is the quantity of money that you pay on a loss before the insurance company will begin to pay the damage. The higher the deductible, the less you will pay monthly.
Today, a deductible of at least $500 is recommended. If you can raise your deductible to $1,000, you could save up to 25% monthly. If you live in an area prone to disasters that may not be the best idea, but if you can afford to do it, raise the deductible and pay less per month.
Third, try buying your car and home insurance with the same company. Most of them have discount programs when you take out more than one policy with them. These can range from 5-15% discounts. It’s worth looking into.
Fourth, watch your credit. Establishing a solid credit score can help keep the costs of insurance down. Most insurance companies look at your score to determine the price of your policy.
Fifth, stay with the same company. A lot of insurance companies give discounts over the years if you stay with them. Just check that your company does that.
Sixth, consider the cost of reconstruction on your policy. The land your house sits on can’t be stolen, most of the time it can’t be ruined by storms or fire, either. Thus, it doesn’t need to be included in the value of your home for reconstruction. Consider your home and whatever other structures may be on the property for maximum value.
And, seventh, try bettering the security of your house. Usually, you can get discounts if you have smoke alarms correctly installed. Some companies even offer to reduce the monthly payment by 15-20% if sprinkler systems, alarms that alert the police or fire station, or fire alarms are installed.
There are quite a few things that you can do. It’ll take a little work, but it will also be worth it.