While many homeowners believe they are getting a good deal on home insurance, they may be spending more than anticipated. Too many of us sign off on our annual renewals with little thought. We treat home insurance as something we should just set and forget. This is unsurprising given the complexities of typical insurance policies and the difficulty in comparing similar policies from different insurers.
To save money on insurance, homeowners should consider the various factors that influence rates and carefully select the location of their homes. Below we’ve listed some suggestions to help homeowners lower their insurance costs throughout their ownership.
Here are five ways to avoid overpaying for home insurance.
Combine Insurance Policies with A Single Provider
When shopping for home insurance, owners should compare individual versus bundled policies to ensure that their policies are cost-effective. Policyholders can frequently save money by consolidating their insurance policies, such as home and auto insurance.
Add Disaster-Proofing Features to Your Home
While a home is already well-built, there are home improvement projects that homeowners can undertake to make their homes less vulnerable to disasters. Installing shatterproof windows and more durable roof materials are two examples. Homeowners can prioritize home remodeling projects based on the types of disasters that could occur in their neighborhood.
Purchase Homes in Low-Risk Areas
To avoid living in a disaster-prone area entirely, homeowners looking to relocate to a new area could purchase homes based on safety ratings. Rather than moving to states where earthquakes or floods are likely, they could buy homes where these occurrences are unlikely.
Revise Policies Based on The Value of Possessions Every Year
It is critical to constantly update policies to reflect homeowners’ current financial situation to save money on home insurance. Rather than renewing the same policy every year, consider revising your insurance coverage based on the value of your possessions.
Boost Your Deductible
Since deductibles and premiums affect overall insurance costs, homeowners who pay more than the other may save money. According to a Consumer Reports survey, nearly half of the respondents had $500 or less deductibles on a typical home insurance policy. Homeowners can reduce their annual insurance premiums by raising their deductibles.
