As home insurance costs have been on the rise, homeowners are looking for ways to control their home insurance costs. Going without insurance is not an option for most homeowners, so we continue to pay our overpriced policy each year. Therefore, I have found some ways to help homeowners learn how to control their home insurance costs each year.
How to Control Your Home Insurance Cost:
Don’t Be Afraid to Ask Questions
Don’t just accept your insurance agent’s word that they are saving you all that is possible. You must look at your home insurance policy completely and ask questions. Let them explain each section of the policy. It’s their job and they are getting paid for it, so don’t hesitate to question everything you don’t understand.
Pay Attention to Deductible Increases
Home insurance deductibles are going up across the country. Don’t get caught up with a percentage deductible if you can avoid it. There are actually homeowners who own $500,000 home with a 5% deductible that would have them end up paying $25,000.00 if they have property damage. Try to stay with a set deductible.
The Roof and Insurance Costs
If you are looking to buy a home, you should look for a hip roof to get the most affordable home insurance. The hip roof is one of the most slippery shapes, so in high winds and storms these roofs are not as prone to damage. If you own a home with a hip roof, let your agent know and see if they offer a discount for that.
Location and Insurance Costs
Your homes location can drive up the price of home insurance if you are in a flood prone area. Other factors that affect home insurance include earthquake areas where you should have a wood frame home, and high wind areas where you should have a brick or stone home to save on your insurance.
Don’t File If Not Absolutely Necessary
Don’t file a claim unless it is a true emergency. Home insurance was meant for emergency purposes only. For example: a tree crashing through your roof, a car driving through your home, a pipe or water heater flooding your home. Insurance is not meant for small projects that are under $1,500. And don’t make multiple claims; they will kick you off their insurance. And you will have trouble getting on with another agency.
Combine Insurance Policies
Most home insurance companies will offer you a discount if you add multiple policies like home and auto. You can then add an umbrella policy for extra protection.
Don’t Get Unnecessary Coverage
If you don’t need flood insurance or earthquake coverage, don’t buy it. Don’t add in jewelry or collectibles if they are truly not valuable. Whatever you do, just be smart about buying your home insurance. And look over your policy thoroughly.
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