Did you know that the final price two different families pay for their homeowner’s insurance can vary by hundreds or even thousands of dollars per year?
There are some variables such as the size and location of the home that cannot be changed, but you might be surprised to hear that if you take just a few extra steps, you could lower your monthly insurance bills without sacrificing quality of coverage.
Check out these 5 different ways to save on your home insurance costs by going the extra mile.
1. Remove “Floaters” Regularly
A floater is a form of coverage that is added to a policy for a specific possession or situation. For some residents, floaters are added for high-end electronics, jewelry, or other expensive items stored on their property. As a policy is near its expiration date, residents should go through their home and consider what floaters can be removed from their policy or if the coverage can be decreased. Simply keeping up with your possessions as they come and go could save you hundreds of dollars every year.
2. Improve Your Credit Report
Insurance providers can legally request a potential client’s credit information in order to determine their deductible and monthly premiums. In some locations, upwards of 9% of all reviewed policies will have the premiums increased due to bad credit.
Go the extra mile and ensure that your debt-to-income ratio is as low as possible and keep up with all monthly payments for vehicles, cell phones, credit cards, and utilities.
3. Invest in Home Security
When determining what a customer’s premiums will come out to, insurance providers must estimate how safe they believe a home to be. One of the most cost-effective ways to increase the safety your family and possessions is by having a home security system installed.
These systems can often be installed and running in just a single day and modern companies offer upgrades such as touchscreen and wireless controls for motion sensors, cameras, and alarms. You can check out NorthStar Alarm reviews and those of competitors to get a sense of the specific services they offer.
Alarm system packages have changed tremendously over recent years, including a number of home automation services. These options give you great flexibility and a number of benefits that you probably didn’t expect from an alarm system. If you haven’t researched alarm systems lately, you may be surprised by their increased functionality.
4. Consolidate Your Policies
Most insurance providers offer much more than coverage for a home, and a simple way to save money is to consolidate policies whenever possible. When the homeowner’s policy is close to expiring, take the time and talk with your insurance broker about any other offerings they have such as auto insurance or even supplemental health insurance. Even if the prices after consolidating are similar, making a single payment per month will reduce the chance of late payments.
5. Get Multiple Quotes
As with any product, you can find the best value with a little research and comparison. Don’t just go with the first quote you are given. You can find wonderful resources for your particular locale, such as state insurance departments and even independent rating agencies. Different agents operate in different ways, so understand how your prospective agents operate. Some agents work only for one specific company, while some others actually offer you quotes from a slew of competitors. These agents can give you the broadest view of your options.
As a homeowner you have a lot on your plate when it comes to maintaining and protecting your property. But by shopping around whenever possible and going that extra mile, you could be looking at thousands in savings every single year on these vital insurance policies.
Thank you for reading. I hope you found this information useful.
Jeff Pittman, Realtor in Ladera Ranch – Orange County, California