How to reduce insurance premiums without sacrificing coverage
With everything rising in cost, homeowners are looking for ways to save money on everything, including their insurance plans. Homeowners insurance can be expensive, but it is necessary to protect against significant expenses if the home is damaged. When it’s time to get a new policy, it is important for homeowners to know how to reduce the premiums without having to sacrifice their coverage.
Raise the deductible
The homeowner must pay a certain amount, the deductible, before the insurance company will cover the claim. In most cases, homeowners will set this low so they don’t have to pay as much if anything happens. However, when getting assistance from La Porte Insurance Agency or another company, ask about the impact on the premiums if the deductible is higher. Raising it a little bit can make a big difference, just be sure to have that amount of money set aside if a claim is ever necessary.
Focus on replacement cost, not purchase
The price a homeowner pays for the home shouldn’t be the replacement cost of the home. The purchase price includes the land, so if the home burns down or is otherwise inhabitable and needs to be replaced, it likely won’t cost as much as buying the home did. This does, however, depend on how long the homeowner has owned the home and the increase in the cost of materials over time. If the insurance policy covers the full cost of the home, ask to have it reduced to the replacement price to save more money.
Bundle with other insurance
Many insurance companies offer more than just homeowner’s insurance, so it is worth it to look into bundling. Companies may offer significant discounts for homeowners who also hold an auto or other type of insurance with them to help with saving money. The more the homeowner bundles together, the more they can save on the different types of insurance they might need. Consider bundling the homeowner’s insurance with auto insurance, life insurance, business insurance, an umbrella policy, and more.
Protect the home from disasters
Natural disasters and emergency situations are what lead to claims being made on a policy. Protecting the home reduces the chance that the homeowner will need to file a claim. This means the insurance company can give the homeowner discounts, and the homeowner can save a significant amount of money. Look into things like hurricane windows, wind mitigation for the roofing, flood protection, and more to see if discounts are available.
Increase home security
Another common reason for claims is due to burglary or theft. Homeowners can take steps to secure their homes, reducing the potential for anything to happen. Often, insurance companies will provide discounts if there is a security system in the home or other security measures. Take the time to learn more about the discounts offered for security measures in the home and look into upgrading to meet any requirements to take advantage of those discounts.
Take the time to read over possible policies carefully to see what they cover and why the cost is high. Then, talk to the insurance company to learn more about potential discounts that might be offered or to discuss other ways to lower the premiums. It may take a little bit of work, but there are ways to reduce the premiums paid for insurance without sacrificing coverage.
