Getting the Most from your Homeowners Policy

Posted January 21st, 2010
by Staff (no comments)

juicingUnless you’ve got some sort of severe, twisted mental disorder, you don’t probably sit around thinking about homeowners insurance. OK, well, maybe you do  if you’re an insurance agent, but most of us aren’t. You get up every day, kiss your spouse goodbye and drop your kids off at school. The last thing on your mind, frankly, is your homeowners insurance policy.

Still, If you haven’t put any thought into your homeowners insurance policy, the fact of the matter is you might just be paying too much.

Here are some ways to cut costs on your homeowners policy and get the most from it at the same time:

  • Raise your deductible. If you have a $1,000 deductible, you’re going to see significant savings on your monthly insurance premium. Understand, of course, that you’re also going to have  a higher out-of-pocket cost if something does happen. Still, it’s a calculated risk that’s often worth it.
  • Look for safety deductions. Depending on your insurance company, you might be able to add fire extinguishers, smoke alarms or security systems and reduce your insurance costs. How far you live from a fire station or from a fire hydrant can even be a factor in your homeowners insurance premiums.
  • Bundle it. Most insurance companies will offer significant discounts if you have multiple policies. Things like car insurance and life insurance factor in here, so make sure you know what kind of benefit you could get from your insurance company by combining coverage.
  • Keep up on maintenance. You may not know this, but some companies will actually cancel your homeowners insurance or fail to renew the policy if your property isn’t properly maintained.
  • Disaster-proof your home. Some insurance companies will give a discount if you do things to make your home more resistant to natural disasters. You might be able to add stronger roofing, update your electrical systems or make some changes to your plumbing and save on your premiums.
  • Use electronic payments. Some companies now actually charge a fee if you send them a check. Save money by having your premiums automatically take out of a checking account or credit card.

Photo via LizMarie

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