5 Ways to Save on Home Insurance

If you're new here and would like to be notified the next time I write something, you may want to subscribe to my RSS feed. Thanks for Reading!


If you want to be notified the next time I write something, sign up for email alerts or subscribe to the RSS feed. Thanks for reading.

1) Raise Your Deductible - When raising your deductible, you are taking on more risk thus the reason for cheaper insurance. Before changing your deductible, ask yourself a few simple questions:

i) Do I have the cash for this higher deductible if something goes wrong?

ii) What is the likelihood that something is to wrong?

iii) If something goes wrong, how much will it cost?

iv) How much money will I be saving?

Letting you know that raising your deductible is one of the easiest ways to save on home insurance is my job, but it’s your job to make sure that you take the appropriate measures when assessing how much you should raise the deductible.

2) Shop and Compare - I like talking to people when it comes to personal finance because I love finding new ways of saving money. When I ask about insurance, most individuals fall under two scenarios…

Scenario 1

Bob and Sue went to bank A, bank B, and bank C. After much thought, Bob and Sue picked bank B because they had the best combination of price, protection and convenience.

Scenario 2

Mark and Laura decided to get insurance from bank A because they’ve been banking with them for a long time, they also feel very comfortable with that bank, and they offered them a discount because they already had car insurance with the bank.

My Thoughts

Both couples end up saving money and are satisfied with their insurance purchases. I on the other hand think they both could have done a little more shopping and comparing so save a substantially larger sum of money.

When shopping for anything, you want to make sure that you look at all your options. Banks are not your only option, you also have the internet, insurance companies and independent insurance brokers. Once you’ve compared all your options, it’s then time to decide what company to choose.

Now lets look at scenario two; Mark and Laura prefer bank A because of their relationship with the bank and it would make things so much easier having all of their financial products in one place. I think it’s a great idea but they should still compare so that they can go to their bank and tell them that bank B or insurance company C can offer them the same type of coverage for 25% less. Mark and Laura’s bank will most likely lower if not match that same price because it is in the banks best interest to do so.

3) Bundle Your Home and Auto Insurance - As mentioned in scenerio two, you will save money if you bundle your insurance. I know with my bank, I get a 10% discount on my home insurance and a 15% discount on my car insurance when I group them together. Ask your local bank or local insurance company about such bundle discounts. You can also add other insurance policies for further discount if you wish to do so. Once again, check with your local bank or insurance company.

4) Safety and Security - When I first asked for quotes, I was asked if I had a security system and if I had a deadbolt on my front and side door. I have the deadbolts but I don’t have the security system. I was intrigued about the questions and asked how much I could save if I did have the system in the house. With the bank I’m currently using I would have saved a measly 6% but my insurance broker found me a company that would reduce the price by 18%.

5) Insure only what is needed - What’s the point of insuring your home, your land and all of your possessions? A friend of mine once told me that his house was insured for X amount of dollars. I looked at his home and told him that he could rebuild the house for half that price. I think he might have taken offence because he then went on the defensive and started telling me about everything that was insured and all the great protection he had. What my friend didn’t understand was that he was paying a premium because he insured his land which he didn’t have to insure and he insured his possessions for an amount substantially greater than what they are worth. The bank will offer you all these great deals on the spot before you have time to realize that you really don’t need to insure a $250 000 home for $500 000.

These 5 tips are very easy ways to cut insurance costs without cutting protection to your home. Remember to always compare, evaluate and ask questions when looking for insurance.

StumbleUpon It!

If you enjoyed this post, make sure you subscribe to my RSS feed!

Related Posts

Filed Under Frugal Living, House and Home 

Comments

Got something to say?