Factors to Consider When Insuring a Home
Insurance is a necessary cost of home ownership. Follow these tips to increase your cost savings:
- Examine all options. Visit several insurance agents and compare the policies they offer. Then, perform background research on each insurer. Ask your agent how you can lower your costs.
- Purchase the recommended amount of insurance. Base your coverage on the replacement cost rather than what you paid for the property.
- Review your policy every year. Some good questions to ask are: has the replacement value of my home changed dramatically? Do I have more or fewer valuable possessions on-premises? Have I made improvements that might lower my premium or might require more coverage?
- Stay with the same insurer. If you need to change your policy, try to stay with the same insurer. Many insurers offer discounts to long-term customers.
- Choose a higher deductible. Choosing a higher deductible will reduce your premium, though it will increase your out-of-pocket expenses if you do file a claim.
- Add safety and security features. Some examples of this include: a stronger roof; modernized plumbing, electricity, and heating; a home security system. Each of these features could lower your premium.
- Bundle your insurance. You can usually save by insuring your life, health, car, and home through the same company.
- Pay your bills on time. Your credit rating will affect your premium.
- If you are buying a home, consider what it will cost to insure. You will usually pay a higher premium for an older house or for one that is vulnerable to storms or earthquakes. Modern energy and plumbing systems as well as the location of your home could help to lower your premium.