There are different things that we can do to save money on homeowner’s insurance. Here are things that we should do:
1) Shop around much:
This is an obvious way to save money on our insurance policy. This should allow us to get the best possible deals. We should try to obtain quotes from many different insurance providers. We could find companies that offer the same or even better coverage for lower monthly premiums. Many insurance providers allow us to obtain instant online quotes and we can do that by filling out forms that contain our information.
We should also be able to get some information by talking to insurance agents or making some phone calls. We could check consumer guides to find insurance companies that could offer us a better deal.
2) Raise deductibles:
In essence, deductible is the amount of money that needs to pay to the insurance company when we need to pay for a claim. The standard amount of deductible is $500 and we should be able to reduce the monthly premium by 25 percent if we raise the deductible to $1000.
3) Monitor credit report:
We could set the price for homeowner’s insurance policy by using the standard credit information. This step is applicable if we are able to maintain a proper credit score.
4) Be a loyal customer:
Insurance company will appreciate it if we stay with them, despite offers for better deals. After becoming a long-term policyholder, we should be able to obtain a special discount. After three to five years, we should be able to get a 5 percent discount for the premiums. After six years or more, we should be able to get a 10 percent discount.
5) Purchase other insurance products from the company:
Other than the homeowners insurance, we could also other plans, such as car insurance and health insurance. Often, we could negotiate reduced premiums for all three.
6) Don’t do risky things:
There are risky behaviours we do that could increase the incidence of fire and damage. As an example, non-smokers are often able to get reduced premiums. Small and large fires are started by cigarettes that are thrown recklessly at specific areas. In this case, we should try to reduce the overall risks and damages caused by fire.
7) Install proper security systems:
If we have a proper security system installed in our house, we should be eligible for discount. In this case, we should choose an approved security system and it should be properly installed by trained technicians. If the system is properly installed, we should be able to deter people from entering into our house.
8) Negotiate properly:
An adequate negotiation skill is needed if we do want to have proper discount. Even if we have done everything that could help us to gain discounts, they would be useless if we negotiate poorly. It means that we should try to improve our negotiation skills. It means we should also have a good relationship with the insurance agent.