If you own a home, you’ll have homeowners insurance, there’s no way around it. It’s just one of the necessary evils that come with owning your own place, and as the cost of goods and services fluctuates over the years, you may find yourself over- or under-insured. insurance for your residence.
Overinsured will cost you money, while underinsured can be a disaster if your home is destroyed in a fire, earthquake or flood. So what can you do about it?
We are glad you asked. Below, we’ve compiled a list of steps you can take to help lower your premiums and make sure you’re getting the coverage you need:
Shopping around
Make sure you’re paying the lowest price for the best coverage by buying insurance around. This way, you can compare rates offered by your current insurance provider with rates from other providers so you don’t pass up any money-saving opportunities.
Do not have time? We’ve got you. Guided Solutions will buy insurance for you. Just give us a little information and we’ll compare policies and coverage for you. We’ll then introduce you to the best options and help you secure your new policy, all at no cost to you! Request a quote for your home insurance now.
Increase your deductible
Just like auto insurance, Increasing your deductible can lower your premiums. Of course, this means you’ll have to pay more when you file your claim, but if you increase your deduction from $500 to $1,000, you can save up to 25% of your premium. Over time, those savings can really add up!
Make sure you read your policy if you live in a disaster-prone area, as some insurance companies may have separate deductibles for certain types of events (or may even separate policies, like California earthquake insurance).
Covers only the costs of rebuilding your home
A common mistake homeowners make is buying insurance based on the price or total property value of their home, including the land.. If you need to rebuild your house, the value of the land remains the same. In other words, you won’t lose your entire property value to rebuild your home.
To avoid overbuying, research the estimated cost needed to rebuild your home minus the land area. Use that money as your own when buying insurance.
Your home and car policy package
Using the same insurance company for your home, auto and liability insurance can save you money. Just be sure to compare plan prices with the cost of purchasing separate policies from different insurers.
We’ve helped customers save up to $1,200 a year by purchasing their home and auto insurance plans. Want to see how much we can save you? Start right now!
Increase the security of your home
- Have smoke detectors, burglar alarms or latch locks? If so, your insurance carrier may offer a small discount to those people.
- Adding a sprinkler system and a dial-up fire and burglar alarm system to the police, fire department or professional surveillance service can save you even more. They are not cheap and not all systems may qualify, so double check with your carrier.
Increase your home’s disaster resistance
- Make sure your soil is graded to have water run out of your home.
- Trim the brush around the house.
- Add storm shutters and reinforce or strengthen your roofing material.
These may or may not help your insurance premiums, but if they can eliminate or minimize potential damage, it’s still money saved in the long run.
Review your coverage every year
You don’t want to spend money on insurance you don’t need, but you also don’t want to be underinsured in the event of a loss. Make sure major new purchases or additions to your home are accounted for in your policy.
Get private business insurance
If you operate a business outside of your home, make sure you discuss this with your agent or company representative, as most homeowner contracts can include: pay a limited amount of business equipment but will not cover business liability. As a result, you may need a separate business insurance policy.
Swap government plans for private insurance
Areas with a high risk of flooding, high crime, coastal storms, and other frequent natural disasters may have government insurance plans available for purchase, but they may not be the best option. .
Compare government policies with private sector policies to see if you can save money, get better coverage, or both.
Stay with the same insurance company
Some carriers may offer discounts to long-term policyholders. Just make sure you periodically compare your current coverage and premiums with other companies and policies. After a while, it’s easy to ‘set it up and forget it’ and miss out on potential savings with other companies.
Consider the cost of insurance when buying a home
Many factors affect the cost of home insurance, such as living in a community with a professional or volunteer fire department or having a brick house in storm-prone areas. It is important to understand these little nuances before signing the dotted line.
Look at request history
A Comprehensive Loss Exchange (CLUE) report on the home you’re considering can provide you with a claim history or information on possible problems the home may have. Right.
Potential factor for additional costs
Flood and earthquake insurance isn’t usually included in standard policies, so if you live in a disaster-prone area, you’ll have to purchase separate policies. The FEMA website has information on flood insurance and the California Earthquake Agency on Golden State earthquake insurance.
