Owning a home is great — No more dealing with landlords, and you can do whatever you want to it, anytime any day! But, it’s not all sunshine and rainbows. As with any other asset, it comes with costs, and in this case, these include utilities, taxes, upkeep, and maintenance, among many others. Add in homeowners insurance premiums, and you got a string of costs waiting for your paycheck.
The good news is your insurance doesn’t have to be among costs that cause you sleepless nights. Here are tips to help you find the cheapest homeowners insurance or rather, lower your homeowner insurance costs.
Start By Shopping Around
Don’t settle for the first homeowners insurance company that comes your way. Shop around and compare policies from multiple companies to see one that offers the best terms. While at it, keep in mind a low price doesn’t always mean the policy is good. For instance, you may come across an incredibly affordable policy, but it offers reduced coverage.
Therefore, while shopping around, ensure you review the quotes comprehensively to see whether what you need covered is included in the policy. Also, remember, just because a particular insurer offered your best friend a discounted premium rate doesn’t mean they’ll do the same for you. Your home, as well as your needs, are different.
Go for a Newer Home
If you are yet to buy your home, go for a new or a relatively newer home. Why? Well, most insurance companies will often offer you discounted homeowner insurance rates when you buy a new home because new structures are often built in line with the latest safety code. Hence, they perceive more modern homes as less of a risk than older ones.
For instance, if you have the choice between a five and ten-year-old home, opt for the former as this will get you the cheapest homeowners insurance.
Consider Bundling Your Policies
Another easy way to reduce the cost of your homeowner premium rates is to bundle your policies together. What this means is you buy coverage from one provider. For instance, if you have auto and life insurance from different companies, consider buying all these covers from the same insurer. Depending on the company in question, bundling will see you get a discount of between 5% and 15%.
Raise Your Deductible
Deductibles mention the amount of money you will have to pay out of pocket when a loss occurs before your insurer can compensate you. The higher your deductible, the lower your premium rate, and vice versa. With that being said, an easy way to get high premium rates off your case is by raising your deductible. But, note, the higher it is, the higher the amount you’ll end up paying when the risk occurs. So, before making this move, review your policy, and if there’s a high chance of any of the risks included happening, then you should reconsider raising it.
Do Not Over Insure
While it is better safe than sorry, homeowners insurance is meant to protect you and your home and not break your budget. Only insure what’s relevant. For instance, note, the land under your house is usually at no risk of theft or fire. In this case, only insure the home. Including land in your cover means you’ll pay higher premiums!
When you buy a home, your goal is to live a more comfortable, stress-free life. But at times, the costs of homeownership can be pretty overwhelming. Buy a house when you’re confident you can manage the costs, and at the same time, find ways to reduce them, and an easy way to do so is by finding the cheapest homeowners insurance.
