Different Types of Home Insurance
As the economy continues to struggle, more people are looking for ways to decrease costs especially when it comes to home insurance. Home Insurance premiums are getting increasingly expensive while coverage remains the same. However more creditors who offer mortgages to families are listing home insurance as a requirement. By not getting a good home insurance policy for your family, you are putting your family in great financial risk and potential hardships in the future. But don’t be afraid, there are a number of ways in which you can save money while still getting the great benefits of a good insurance policy. Learn the top five ways to save money on home insurance:
Don’t get Unnecessary Insurance
There is a huge range of different types of insurance that are offered by insurance companies today. This ranges from fire insurance to wind and earthquake insurance. You should disregard the insurance policies that you feel are the least likely to encounter. A person who lives in California will most likely get fire insurance but not wind insurance. However in Florida, getting insurance is a smart move because of the high likelihoods of hurricanes and tropical storms. If you don’t have much jewelry you might not consider getting a jewelry floater policy. Costing costs here and there can amount to a huge number especially since increasing coverage can be much more expensive.
Lower the risk to Insurance Companies
You may not know it but proving companies that your house is safer can often decrease your insurance premiums. In older houses, the heating and wiring systems are much older and are a higher risk for potential fires. Changing the wiring of the house and improving the heating system will lower the risk which will lower the premiums paid. Another way to lower your risk is to purchase a less expensive house. A cheaper house will come with a cheaper insurance policy.
Having a good Credit Score
Insurance companies are increasing the usage of credit score a major factor when deciding the amount for a premium. The lower the credit score, the most risk you will be overall to the company and the higher your premiums will be. An individual who has a lower credit score will often by less responsible and has a higher risk for causing an accident. Therefore having a healthy credit score will not only save you money on interest rates but also on insurance premiums.
Ask about Homeowners Insurance Discounts
There are many discounts that are offered as people increase their coverage. An insurance company might offer a bigger discount if you sign up for more coverage. A bundle deal might also reduce the costs of smoke detectors, security or fire alarm systems, fire extinguishers in the home, etc. There are also discounts people who are 55 and older or retired. Other discounts include military discounts.
Combining different Insurances together
Many times insurance companies will offer a discount if you sign up for several insurance policies with them. Getting auto-insurance and home insurance with the same company can normally save you around 5-15% overall. You should always shop around for cheaper price and better deals.
Shopping around for Insurance
Often an insurance company sales associate might intrigue you with a really good deal or discount. They may trick you into signing up for a deal by saying this is a limited time deal only. The best strategy when shopping around for home insurance is to go to at least 3-4 different places and comparing the deals. Many times you will be able to find a better deal or at least better coverage for the same price. By shopping around for deals, you are also able to negotiate with the insurance companies.
Getting home insurance is a very important factor in keeping your family safe but it should not cost you a fortune. There are many ways to save money while still receiving a good coverage. For more information please visit the website below.