Monday, August 20, 2012

How to get cheaper house insurance

Part 2 of the "How to get cheap insurance"!

Homeowner insurance premium is based on the quality of construction of your house, location, and amount of security. You can't do much about the first 2 things, except move to an other house, which isn't practical.

Anyway, here are a few tips on lowering your home insurance premium:

  1. Think about increasing your deductible. If your current deductible is low and you would be able to spend more than that if you where to make a claim unexpectedly then lowering the deductible amount is the first go-to way to reduce your premium.
  2. Compare your current coverage with other competitors. Not all plans are equal, some might be better suited for you, so review the policies of other competitors when the time comes to renew your coverage.
  3. Potential deals and discounts. 
    • Some insurers will offer you a discount if you insure both your auto and home insurance from them. 
    • Some insurers might offer senior discounts for people as young as 50 years old. 
    • Like auto insurances, see if you can get insurance via your company to get a group discount.
    • Consider security equipment, simple things such as smoke and carbon monoxide detectors will usually get you a discount. Other equipment would be burglar alarms, dead-bolt locks or even sprinkler systems. Make sure to check with your insurer prior to purchasing these though to make sure the devices qualify for a discount.
  4. Do the inventory of your belonging and approximate a replacement cost. Your rate is also based on the contents of the house, if you've recently gotten rid of stuff or replaced appliances, notify your insurance company with your new replacement cost.
  5. Try to avoid claiming for minor stuff. This will potentially increase your rate.
  6. Stop smoking. Smoking increases the rate on all your insurances, since it's a health & life hazard, and smoking is potentially dangerous for your house & car.
Hopefully some of these tips will help you lower your home insurance premium.

Take my money,