Top Ways to Get the Best Deal on Home Insurance
Home insurance is often a required expense for homeowners. This is because most mortgage lenders require you to purchase a policy with a minimum amount of coverage. Even if your home is owned outright and lender requirements do not apply, home insurance is truly beneficial and should be considered as a requirement. This is because you potentially face a total financial loss on the home if it is destroyed, such as by severe weather or a fire, and you are not fully insured. While home coverage is important and even required in many cases, it can be expensive. These tips can help you to avoid paying more than necessary for the coverage you need.
Home insurance rates vary dramatically from insurer to insurer. In some cases, premiums can vary hundreds of dollars on the same home. With this in mind, one of the best steps that you can take to avoid paying too much for home insurance is to shop around and compare rates.
Raise Your Deductible
Your deductible directly impacts the cost of your premium. It is common for homeowners to pay one percent of the insured value as their home insurance deductible, but you have the opportunity to adjust this. For example, you can raise the deductible to two percent or choose a higher flat rate for premium savings. Keep in mind that the deductible is due each time you file a claim. It is important that you have the financial ability to pay the premium immediately, so you may consider keeping an amount equal to the deductible in a savings account for easy accessibility in a time of need.
Bundle Your Policies
Many insurers offer a sizable discount if you bundle your policies together. For example, some offer a discount if you bundle your home and auto policies with the same insurance company. With other providers, you may enjoy even greater discounts by bundling a jewelry policy, life policy and other types of coverage as well.
Choose the Right Coverage Amounts
Another important factor to consider when requesting a new policy is the coverage amount. You may be inclined to purchase a policy for the full sales price or value of the property. However, land does not need to be insured. This is because even in the event of a fire, flood or other total loss situation, the land will never be destroyed. You only need to worry about replacing the structure. However, keep in mind that there is a difference between the current value of the structure and the cost to rebuild it if it is damaged.
A smart idea is to speak with several different insurance companies for quotes before you decide how to proceed. This can take time, but you can learn more about coverage options and rates by doing so. Make plans to spend a few hours or more completing this process, and keep these tips in mind for the best results.