Homeownership comes with certain expenses that you need to pay every month, and insurance is one of them. It may seem like another unnecessary added expense, but in reality, insurance is one of the most important expenses because it can cover you for damages that could happen to your home. It also typically includes personal property coverage for the personal belongings inside your home, as well as liability insurance in the event that someone gets injured on your property, among other things. Because home insurance can be expensive, it’s important to understand exactly what you need and what you don’t. Otherwise, you could end up paying more than it’s worth. It’s also a good idea to sit down with an insurance broker to see how to reduce your home insurance premiums. Here are a few of the options they will explore with you:
Not all home insurance policies are created equal. Each insurance company has different parameters, terms and premiums, so it’s wise to shop around before settling on a particular policy. Gathering quotes online can help you get a better idea of each insurer’s contract rates and limits. If you’re not familiar with all the terminology and clauses, it’s best to seek the help of an insurance broker.
An insurance professional has detailed industry knowledge and a level of expertise that you can rely on. They will determine your specific needs to find the best policy with the right amount of coverage with the most competitive premiums. Brokers are required to protect your interests and make sure that your needs are put first, not the insurance company.
Looking at Bundling Insurance Policies
You can lower your monthly premiums if you bundle your home, auto, and any other insurance needs together with the same insurer. Your insurance broker will have detailed knowledge of all the insurance companies that offer these discounts that you can take advantage of to reduce your home insurance premiums.
Increase The Deductible
Another strategy you can use to lower your insurance premium is to increase your deductible. With that said, the deductible should not be higher than what you can afford to pay if a claim needs to be made. To find out if this strategy is best for you, talk to your insurance broker.
Upgrade Your Home
Certain upgrades can also help to reduce your home insurance premiums. Many insurers offer discounts for new energy retrofits and improvements made to enhance the security of a property. If you’ve recently installed a new alarm system to keep out intruders, or a sump pump to protect your home from water damage, or an energy-efficient furnace, contact your insurance broker to find out if these improvements can make a difference in the premiums you pay.
Review Your Coverage Every Year
The current value of your home and condition can change over time, requiring adjustments to your policy. As time goes on, you might also need to increase or decrease your coverage limits depending on the type and amount of protection you need. Certain life changes can also award you with new discounts – such as a retiree discount or a non-smoker discount. Review your policy each year with your insurance broker to ensure you are only paying for the coverage you need.
If you’re ready to start shopping around for a home insurance policy or you simply want to find out if you’re paying too much on your current one, contact us at Tanner Insurance, and we’ll show you how to reduce our home insurance premiums without limiting the coverage.