Home insurance is one of the most important type of insurance. Not only is a house your biggest possession, it is extremely costly to maintain. Many people look for ways to save on insurance premium, which is a perfectly sensible thing. However, it can be confusing and not as much of an easy task considering the various different policies of different insurance companies. In order to get the best premium, you need to know a few tricks.
It is important to keep in mind that policies differ between different companies. What one policy may offer you might not be available in the second one. Due to this, it is important to consult and confirm everything with your insurer before you decide on paying for the premium. Following are some of the things that can help you save your money while purchasing a home insurance in the long run:
- Loyal Customer and Multiple Policy Discount
Many companies offer discounts to their loyal customers, and you can ask your insurance company if you are applicable for these discounts. If you have maintained your insurance policy with one insurer for several years, you can ask the details about any special discounts and how you can be eligible for these discounts. Moreover, if you buy your home insurance policy with another policy, such as auto or flood, you may be eligible for multiple policies discount. This way, you can save around 5% to 15% on each policy with the same insurance company. You need to check beforehand to be positive that purchasing multiple policies will be cheaper than buying individual policies separately.
- Maintain a Good Credit Score
A majority of companies give you discounts based on your credit score. By having a good credit score, you can increase your chances on saving on your homeowners insurance. Due to this, it is important to check your credit score a few times with a credit agency in a year. In order to maintain it, you need to pay all your bills on time, keep the credit balance low and not obtain more credit than what is actually required.
- Increase Deductible to Decrease Premium
Most insurance companies would recommend you to pay a deductible of $500. Deductible is the amount that you need to pay to the insurance company before they pay for your claim. By offering a deductible of $1000, you can save up to 25% on your insurance premium payment. However, it is important to remember that different coverage may require different deductible amount. For instance, an earthquake prone area may have a different deductible for an earthquake policy, while a hurricane prone area may have a different deductible amount for wind damage. Explore all the possibilities and consult with your insurance provider before paying so that you can get the most benefit.
- Review Policy Limits
Most people want all their possessions to be covered. However, value of certain things depreciates overtime and there is no longer to pay an extra premium for an item that was $1000 four years ago and is only worth $500 today. Always check the value of your possessions each year to check if you can reduce or eliminate the premium paid for it.
- Explore as much as you can
The way to get the best discount on your insurance policy is by exploring different policies offered by different insurance companies. You can either look for insurance companies online, contact them all by yourself and check on their policies and the benefits that they offer. Another way is to hire an independent insurance agent, which can quote you policies and their rates from several different insurance companies. Most companies basically offer the same coverage, however, the price and services may differ according to different companies.
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