3 Tips For Lowering The Cost Of Your Homeowners' Insurance
If you are looking to free up a bit of room in your budget each month, lowering the cost of your homeowners' insurance can be a great way of accomplishing this goal. Best of all, lowering your insurance costs may be much easier than you realize. This is especially true when choosing to use the tips below.
Tip #1: Make Sure You Are Not Carrying More Coverage Than You Need
Far too many homeowners end up paying for more coverage than they can ever use simply because they make a common mistake when evaluating their coverage needs. This mistake is confusing the value of their home with the cost of rebuilding their home. Many people mistakenly assume that these two amounts are the same. However, the resale value of your home includes both your house and the property that it is built on. If your home is ever destroyed and needs to be rebuilt, you will already have the land needed to build it on. Consequently, the cost of rebuilding can be much lower than the actual value of your home. If your current homeowners' insurance policy offers enough coverage for the total value of your home, you are paying for more coverage than you need or could ever use. Adjusting your coverage limits to reflect the true cost of rebuilding your home can result in a lower monthly premium.
Tip #2: Install An Active Alarm System In Your Home
The great thing about this specific tip is that it allows you to improve the safety of your home while still saving some money on your homeowners' insurance. This is because the presence of an active alarm system in your home can help greatly decrease the chances that your home will be targeted by criminals. This is a fact that improves the safety of your home while also helping the insurance company reduce the risk that you will file a claim as a result of theft. That is precisely why so many insurance companies offer substantial discounts to homeowners who choose to install and maintain an active alarm system in their homes.
Tip #3: Raise Your Deductible
Homeowners' insurance policies that offer low deductibles often come at a much higher price than those with slightly higher deductibles. This is because the higher your deductible is, the less likely you are to file a claim regarding minor damage to your home. Since frequently filing small claims is never a good idea, there truly is little benefit to paying more for a low deductible policy. Choosing to raise your deductible even slightly can result in rather significant savings each month. In most cases, you will find that these savings far outweigh the out-of-pocket expense associated with your new higher deductible if you do ever need to file a claim.
If you have questions, reach out to a local insurance company, such as Illinois Insurance Center Inc.