A lot of us have fixed costs that we pay every month, but don’t consider that there might be a way to reduce them. Insurance is one of the most prevalent cases of this. We buy our insurance once, keep renewing it, and never think about looking for a better rate. If you own a home, chances are you can get a better deal on your homeowner’s insurance policy than you’re getting right now. You won’t be ale to change the amount of taxes you have to pay and you probably won’t be able to get a better mortgage in this climate of increasing rates, but you might be able to save some money on your homeowner’s insurance policy. Here’s what to do.

Don’t Get Unnecessary Coverage – Not all types of homes need the same types of insurance. If you don’t live anywhere near a fault-line, you don’t need earthquake insurance. If you live in an area that’s never been flooded and is nowhere near a flood plane, chances are you don’t need flood insurance. Don’t skimp on the coverage that you do need, but if the risk of an event is zero, there’s no need to insure for it.

Get a Higher Deductible – Your deductible is the amount of money that you have to pay on a claim before your homeowner’s insurance policy kicks in and starts writing checks. If you have a deductible of $1,000 and a thief comes in and steals something worth $2,000, you’ll have to pay $1,000 and the insurance company will have to pay $1,000. If you have a lot of money in the bank, say $10,000 chances are you can afford a bit of a higher deductible. This way if something does happen, you’ll have plenty of money in the bank to take care of it. If something catastrophic happens, you’ll still have the safety net of insurance.

Multi-Policy Discounts – Many insurance companies will give you a discount if you get multiple types of insurance from them. If you get your auto insurance, your homeowner’s policy, and maybe even health insurance from the same carrier, you can quite often get a bargain. Don’t be fooled though, you won’t always get the best deal by taking the multi-policy discount. Sometimes it will make sense to get different types of insurance with different companies.

Other discounts – In some cases you can get additional discounts from your insurance company, you just have to ask. Sometimes you’ll save money if you have a sprinkler system or a security system. You might also get a discount for joining a group such as the AARP. You won’t know until you ask!

Comparison Shop – This is an absolute must! Always look around and try to go for the best deal you possibly can. Use the internet to look even further. You should check out at least five different companies before deciding on one, this way you know you are getting the best price.

Have a mindset that there’s always going to be a better deal out there, you just have to find it. Chances are you can save a lot of money on your homeowner’s policy, you just have to go out there and make it happen.



 Related Content: