Finding competitive homeowner insurance can be an overwhelming task if you do not know where to start. To help you in this task, below are some tips that you can follow to make your search for competitive homeowner insurance manageable.
1. Do comparison shopping. If you purchased your homeowner insurance from the same company for the past several years, chances are you have no idea how other insurance companies charge for the same purchase. This time, before signing a new insurance policy agreement with your old company, take time to compare what your current insurer is offering with what other insurance companies can offer.
2. Get insurance quotes. Most insurance companies offer instant quotes on their websites for free. Get at least three different quotes form at least three different companies. Limit your search to major insurance companies to avoid scams and fraud. You can also request insurance quotes from your local insurance agent.
Once you have the insurance quotes, analyze them carefully. Compare the quotes in terms of coverage, premiums and deductibles. Do not be tempted to choose the homeowner insurance that has the cheapest premiums. Cheap does not necessarily mean it’s the best. Consider all variables.
3. Watch out for discounts. Some insurance companies offer discounts if you buy another insurance product from them. Consider buying an automobile insurance form the same company if your current one is nearing its due. Buying several insurance products from one company drives your monthly premiums down
4. Raise you deductibles. Insurance companies charge higher premiums on homeowner insurance policies that have low deductibles. Raising your deductibles, therefore, will get you lower monthly premiums.
5. Watch out for hidden charges. Some homeowner insurance policies contain extra charges that you do not need. Thus, it is imperative that you repeatedly go over the coverage of your homeowner insurance policy. For example, some insurance companies include the contents of your refrigerator in the coverage. If you do not need this, tell your agent to the cost out and make sure that it will lower your premiums.
6. Inform your insurance agent of any improvements made to your home. If you have recently updated the plumbing, electrical wiring, and roofing of your house, make sure that the insurance company knows it. They might give you discounts for that since there is a high probability that these won’t get damaged in the near future. Do the same thing if you have recently installed a security system at your home.
7. Make sure that the price of the land is excluded in the value of your home. A fire or natural disaster will not destroy the land your house is built on and should not be included in the coverage. If it is, ask for it to be removed. This will bring your premiums significantly lower.
8. Opt to pay premiums every six months. Insurance companies give discounts to homeowners that elect to pay six months’ worth of premiums. If you can afford it, choose this option to bring your premiums a little lower.