Homeowner’s insurance is a necessary expense when you own your own home and can certainly be a lifesaver in the event of a disastrous tragedy, but that doesn’t make the premiums any easier on your pocketbook.
In today’s economy, saving money any way that you can has become a daily endeavor in the lives of Americans and it can certainly extend to your homeowner’s insurance policy. With a few savvy investments now, you can cut the fat on your premiums and save back a hefty little nest egg for your children’s college tuition.
To determine if you’ve done all that you can to cut back your premiums, ask yourself the following questions:
Question #1: Have you thoroughly shopped the insurance market?
If you haven’t, consider doing so. There’s a lot of insurance companies out there and they all have varying rates and case-by-case implementations that might save you cash. Click on over to the Nation Association of Insurance Commissioner’s website and check out their comprehensive listing of insurance companies in your state; it’s the best starting place that you can find.
Question #2: Have you checked to see if your auto insurance provider also sells homeowner’s insurance?
Many insurance companies out there dip into all insurance markets and if you purchase more than one policy from them, they’ll provide you with a substantial 5% to 15% discount. This is where shopping around will come in handy, though, as you’ll want to make sure buying a separate policy elsewhere won’t be cheaper than having two in one place.
Questions #3: Are you only paying for the coverage that you need?
Re-evaluating your policy should be an annual endeavor to ensure that your coverage is right where it needs to be. When you initiated your policy you might have included possessions that you no longer own, or perhaps you’ve insured certain items separately that now don’t need to be covered in your homeowner’s policy.
Question #4: Have you simply asked your insurance agent how you can save money?
This is a basic one that a lot of homeowner’s don’t think to do, thinking that an insurance agent only wants to make you pay more money. More often than not, they’re willing to help you save and will offer a list of things you can do to improve your own, and lower your premiums. On this list, you might find things like: installing a security system, or taking measures to secure your house against disasters prone to your area (i.e. hurricanes, tornadoes, earthquakes).
Questions #5: Is the land your home is on factored into the cost of your policy?
If so, take it out. Your homeowner’s insurance policy is there to provide you funds to either rebuild your home if it is destroyed, or replace possessions if they are stolen. The land that your house sits on will still be there after a fire or a hurricane, and it can’t be stolen, therefore it doesn’t need to be factored into your coverage.
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