The cost of homeowner’s insurance is one of those unavoidable expenses that comes along with owning a house. How much you’ll pay for insurance depends on your location, age of your home, square footage and amenities. The average annual homeowners insurance premium is $1200. That can feel like a big expense but knowing you will be reimbursed if something happens to your most valuable investment can be priceless.
Plus, your mortgage company may require that you keep a certain level of homeowner’s insurance. Most mortage companies will require that you make this payment to them. They will keep the payments in your escrow account and pay the premiums with it.
I have put together a list of secrets for you that might help you cut the cost of your premiums.
Talk to your insurance agent every year.
About two-thirds of American homes are underinsured, by an average of more than 60%, according to Nationwide. Before you start looking at ways to cut your insurance costs, it is important to understand what your current policy covers. Even though insurers have tried to make their contracts easier to digest, those thick renewal documents can still be confusing. Start with the declarations page, which is essentially the summary of your coverage. Then take a look at the exclusions page to see what your policy specifically doesn’t cover. If you are still having troubles, please call me I would be happy to help you out.
Boost the deductible.
Increasing your deductible can have an immediate impact on your insurance costs. A higher deductible will result in a lower premium because you will have to pay more out of pocket when a claim is filed. If you decide to increase your deductible, be realistic. You do not want to find yourself unable to afford a critical repair because you cannot cover the deductible cost.
Look for discounts.
When shopping around for insurance, ask a licensed insurance agent about discounts. Just like auto insurance, there are several discounts available ranging from customer loyalty program to Bundling your policies to enjoying a claim-free history. It can never hurt to ask contact me today.
Decide carefully about making claims.
Claims can drive up your premium. A large number of claims could cause insurance companies to see you as a high-risk customer. Depending on your carrier, you could even face cancellation for filing too many claims. If it is a minor claim that you can afford to pay out of pocket, it could save you money, in the long run, to pay for it yourself.
Make improvement to your home
So insurance carriers will give discounts for improvements made to the home that promote safety or that will keep the house from getting damaged. Example if you have a new roof installed you might get a discount because the chances of it leaking are less and most likely you would have a warranty if it did.