Few Tips On Controlling And Keeping Your Home Insurance Costs Down

| April 18, 2013 | 0 Comments

Even though the home insurance costs seem to be rising every year, we have no choice but to buy home insurance at high prices because it is too risky to be without a home insurance. If you have to shop for competitive policy every year it would become a burden for you. Buying a great insurance at a competitive price requires extensive research, to understand the different policies and benefits suited for you. It might prove to be beneficial to stay with the same policy that has the right coverage for you for longer period of time because you will earn discounts for staying longer. Below are some points to help you keep your home insurance costs down.

Increase deductibles to about 1%: Your home insurance was meant to cover large damages, natural disasters, accidents, etc. You should set your deductibles as high as 1% of the cost of your house for example if your house is worth $200,000, your deductible should be $2,000.

  • Make home improvements: You may make modifications or home improvements to increase the value of your house. For example install new smoke detectors, CO detectors, refit roof trusses with strapping. Install backup generators, security systems, panting, siding, windows, doors, etc. install a burglar alarm, door security and so forth.

  • Optimize house design: Install energy efficient windows, doors, insulation, siding and hip roofs for safety against storms and high winds. You don’t want to waste your energy and catch high winds through weak siding or roofing that catch high winds and are prone to damage.

  • Location, very important: Before buying a house always check the arena for natural disasters. You want to be away from areas where floods or hurricanes hit very often. In areas where your house might be facing high winds, stone or brick houses are appropriate. Chose houses made up of wooden frame or aluminum frames in earthquake prone areas. You might also want to stay in a community close to the rescue or fire department, police, hospital, schools, and other useful facilities.

  • Check your home before buying: Before you purchase your house, have professional inspectors inspect your house. It could save you lot of money and grief in the long run. Also check the Comprehensive Loss Underwriting Exchange report for your home before you buy to see prior claim history.

  • Refrain from making small claims: Making frequent small claims could drive your monthly insurance premiums go high. Make minor repairs yourself. The insurance is to protect your home from catastrophic damages.

  • Strengthen your home: By reinforcing your home with storm shutters, modernizing heating, electrical and plumbing systems, reinforcing the roof, making earthquake proof, you may reduce the risk of water, damage, electrical short circuits, and damages.

  • Exclude land value: There is no need to insure the land: It’s less likely that the land upon which your house is built will be stolen, catch fire or damage in any other way. So it is better to insure the value of your home only.

  • Get all your insurance in Combined policies with one company: When you have several insurance policies with the same company, whey will offer you discount for multiple households or in combination with your auto insurance you may receive an umbrella liability policy to consolidate your policies and optimize costs.

  • Get the coverage you need and get rid of coverage you don’t: Get rid of unnecessary items that you might be paying for such as in some states getting earthquake coverage is unnecessary. Always talk to your insurance agents regarding special offers or discounts that they might have available for you. For example there might be discounts for people with good credit history or driving records.

Always get enough insurance that you might need. You might end up spending thousands of dollars in the long run trying to save few pennies of insurance.

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Category: Insurance

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