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Cutting Your Home Insurance Bill: Three Secrets That Can Save You A Bundle

Every year, Americans are paying more than they need to on their home insurance. Your home is one of your most prized possessions. Therefore, it is only natural for you to take steps to protect it. Protection for your home comes in the form of homeowners insurance. However, Premiums on home insurance have risen over 50 percent in the last ten years. Currently, the average insurance premium for homes in the United states stands at $1083 annually and can rise as high as $2,024 in some states. If you are one of the many homeowners looking to slash their insurance bill for the next year, take a look at these simple tips.

Shop Around

It can be tempting and seem much easier to just purchase your home insurance from your mortgage lender or bank. Don’t be fooled by this. Take the time to check out other insurance companies and utilize the comparison tools available to compare policies online. This also applies every year as your renewal date approaches. It can seem easy to just automatically renew with the same firm every year and actually, insurance firms are counting on this. A quick browse online can tell you if there are better deals out there suited to your needs. Often, your insurers will try to match these if you mention them as well.

Often you can get a discounted price if you “bundle insurance needs” i.e. purchase your content and homeowner’s insurance (and even auto insurance) as a bundle from one firm. Enquire at your insurance firm and negotiate a price you are happy with. Insurance companies are always happy to gain more policies and business.

Do Not Double Insure

One mistake we often make is paying for home and content insurance yet having individual insurance on items in our home. This is what is called double insuring and it serves no purpose except to increase your payments. Paying your premium will already consume a sizeable chunk of your income so be careful not to be paying a two premiums on the same item.

When valuing the cost of your home and contents, take the time to accurately value its costs. Overestimating the costs may seem like a good idea but it can also lead to higher premium payments.The key to this saving is taking the time to really understand your policy before entering into it. Often insurance companies can add extras into your policy without you even knowing or understanding how it affects you.

Pay Annually

Deciding whether to pay monthly installments or to pay upfront for the next year is a decision many people have to make. A lot of them ask the question: If I pay the full cost of the year now, will I be getting a better deal? Well the answer to that is a resounding yes. Many insurers are prepared to offer discounts if homeowners make the annual payments in full. Don’t be afraid to ask when talking to your insurance agent.

Making monthly payments can increase your overall premium by as much as 10 percent more. So why should you essentially pay more for the same cover? Of course some choose the monthly options due to not being able to afford the lump sum annual payment. Incorporating your home insurance into your budget when buying a home is another great tip for making savings on your insurance. Comparison against competitors with the same policy offerings can be very useful here.

Home insurance does not need to consume your entire budget. Planning ahead and factoring in insurance costs into your home buying costs can save your a lot of hassle. With a little planning, research and these simple tips you can be looking at an affordable homeowners insurance policy in no time.

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About Tim McMahon

Work by editor and author, Tim McMahon, has been featured in Bloomberg, CBS News, Wall Street Journal, Christian Science Monitor, Forbes, Washington Post, Drudge Report, The Atlantic, Business Insider, American Thinker, Lew Rockwell, Huffington Post, Rolling Stone, Oakland Press, Free Republic, Education World, Realty Trac, Reason, Coin News, and Council for Economic Education. Connect with Tim on Google+

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