This guest post is from Allen Grove, a freelance writer who focuses on financial, health, and insurance.
While insurance can be a vital part of your family’s financial success, you should not need to deal with high monthly payments. Homeowner’s insurance is meant to protect your family’s future finances when catastrophe strikes your home. The monthly premium does not need to be so high that you cannot live comfortably. If you are dealing with or will be dealing with a high insurance premium, here are some tips to decrease your monthly insurance costs.
Shop around. You should probably not settle for the first insurance agency. Insurance costs vary based on company and geographical region. Dallas home insurance costs will be different than New York insurance costs. No matter the place, discovering the company that has the best prices in your region is vital. Your monthly premium will be a long-term monthly expense. You do not want to be saddled with a high rate because you did not take the time to research other insurance companies. By checking out the insurance packages that are offered by multiple agencies, you will be able to discover which has the best deals. Just remember that your insurance company should be based on more than your monthly premium. You should also try to determine if they have excellent customer service and if they have a history of trying to wiggle out of paying claims. If your house catches on fire, you should not need to worry about your insurance agency refusing to pay your claim.
Multiple Insurance Plans. Many companies offer discounts if you take out at least two insurance plans. This discount could be around 20%. For most people this would be home and auto insurance, although you might also want to check if your business, life, or renter’s insurance plans qualify for a discount. You should check with your current insurance agency about how much both your premiums will decrease with the additional insurance plan. Remember to check other insurance agency’s for your premium costs with multiple insurance plans.
Discount For Protecting Your Home and Family. Many home insurance plans will offer discounts if you install protective devices in and around your home. The items considered protective varies based on the insurance company that you are insured with. Some items that could lead to a decrease in your premium include: smoke detectors, fire alarms, burglary alarms, fire extinguishers, sprinklers, and deadbolts. Before installing these items you should check how much it will cost to purchase, install, and maintain these items.
You should also be aware that if you receive this discount, you need to repair or replace any faulty safety items. If a fire occurs and the insurance agency discovers that you never replaced the batteries in your smoke alarm, they may refuse to pay your claim. If you do not plan to replace faulty or damaged safety item, it is imperative that you contact your insurance agent about negotiating a slightly higher insurance premium.
Discount Based on Age. You may get a discount based on your age. Many insurance agencies offer a discount to home owners that are over 60. You can also get a discount based on your home’s age. Insurance agencies offer lower premiums to homeowners who own new homes or have recently renovated their old home. Old homes have a higher chance of water or fire damage from faulty wiring or plumbing. You should ask your insurance agent how much the discount will be. It may not be enough to make up for the cost of renovating your home.
Claim-Free. Insurance agencies down deep are companies. They lose less money if you do not make claims. Due to that fact, they will offer discounts to your premium when you go a certain amount of time without making a claim. The number of years that you must remain claim free depends on the insurance company. When you are shopping around, you should ask about their claims-free policy.
While home insurance might not be a necessity, it can provide a vital financial cushion for your family. That being said, you do not want to pay high home insurance premiums. In order to avoid high premiums, you should proactively seek opportunities for discounts. Just make sure you uphold the terms of those discounts. While a lawyer can help you receive your claim, even the best lawyers might not win your case if you knowingly break the terms of your insurance policy.