In part I and part II of this building and contents insurance series of articles, I looked at contents insurance, changing this aspect of coverage, and having a full list of your possessions in case you need to file a claim. There is, of course, much more that could be said about homeowners insurance policies, and this article is designed to explain some of the ways you can save money when you buy coverage from an insurer. Homeowners insurance can be costly, especially in certain areas of the country that are more prone to certain natural disasters. Yet since this coverage is a worthy investment, you simply cannot go without it. But you can lower the cost for your policy if you follow these simple tips.
Buy More than Building and Contents Insurance from Your Insurer
In addition to homeowners insurance polices and home renter insurance, most home insurers also offer automobile coverage, life insurance, and other types of protection that you will likely need. These same companies normally offer discounts when you buy several different policies and bundle them together. If you buy automobile coverage alongside home coverage, for example, your homeowners insurance will likely cost less.
Increase the Amount of Your Deductible
An insurance deductible is the amount that you will have to pay the insurer before you will receive a payout in the event of a contents insurance claim or other loss. Typically, this amount is just deducted from your payout. Thus, if you have a $60,000 claim and a $1,000 deductible, you will only receive $59,000 from the insurance company. It is a well-known fact that the higher the deductible you elect, the lower your monthly insurance premiums are going to be. Select the highest deductible amount that you can afford to go without in the event of a loss and your policy will cost less.
Do Not Buy More than Building and Contents Insurance Basic Coverage If You Do Not Need It
It is easy when shopping around for home insurance policies to be convinced by insurers to purchase more than basic coverage for your home and goods. This may be perfectly fine in many or even most instances, but if you are just starting out in life, basic coverage will be all that you need. On a related note, only buy the amount of coverage that you need plus a bit extra in case of unforeseen expenses.
As with any other product you will buy, comparison shopping is the best way to find the least expensive home insurance policies. Take your needs to several different insurers and ask them how much a comparable policy will cost. Compare apples to apples. For instance, give each company the same total you would want to receive for a contents insurance claim so that you know the actual difference in price for the same coverage.
Everyone is trying to save money these days, even on homeowners insurance policies. It is important to have the right amount of coverage, but it is also possible to save money while having enough to cover any loss. Follow these steps to save money on this important product.