Home insurance is essential to protect your investment against unforeseen disasters and losses. Of course, it’s not something you want to skimp on. But are you paying too much for your home insurance policy? Navigating the home insurance market can be difficult without proper guidance. There are many affordable ways to lower your rate without sacrificing coverage. Here we’ll help you explore ways to find cheap home insurance with appropriate coverage.
1. Bundle to Save
Bundling your insurance policies can help you get cheap home insurance. If you have a car, boat, ATV, or vacation home, those policies can be bundled. According to Progressive, customers can save an average of 7% on their auto policy when they bundle home and auto insurance. New customers can save over 20% on average.
2. Don’t Ignore Discounts
Insurance companies offer discounts for many things that you may not even think of. Are you retired? You may qualify for a discount. Other discounts may be given for home improvements, being mortgage-free, or not having any recent claims. Additional discounts will usually be given for paying for the policy in full versus monthly. Other things to ask your insurance agent about include discounts for living in a gated community, having an HOA, being a non-smoker, or being a new homeowner. These small discounts can add up quickly helping you to get cheap home insurance.
3. Add a Home Security System
Typically, if you have a home security system installed, you can receive home insurance policy discounts. The amount of the discount can vary by insurance company, but some can offer up to 10% off. Other prevention measures that could get you a discount are smoke detectors and fire alarms. If you have leak alarms, make sure to disclose that as well, as it could get you additional savings.
4. Stick with One Company
With most insurance companies, the longer you have a policy with them the more loyalty discounts they will offer. If you haven’t received a rate reduction and you have been a policyholder for over a year, try and call your insurance company and see if they will lower your rate. Sometimes bringing up switching companies can also work in your favor. Ultimately, they don’t want to lose your business.
5. Determine What You Need
Being underinsured can have catastrophic consequences. But being overinsured could cost you thousands of dollars a year. First, make sure that you have enough dwelling coverage so that you can rebuild your home if needed. Make sure enough dwelling coverage is extended to any other structures like detached garages, sheds, or barns in this number. Next, make sure that enough is allocated for your personal property and you can revise the personal property limit up or down accordingly. You should also take a look at personal liability limits within your policy. Lastly, make sure that your loss of use coverage is appropriate if you need to rent another place to live in your area. You may also want to include flood insurance or earthquake insurance depending on where you live.
6. Shop Around
Don’t commit too early to a home insurance policy before weighing your options. You can use online comparison websites to find the best rates in your area. Additionally, you also can reach out to independent insurance agents that work with multiple insurance so they can offer you several rates. However, independent insurance agents are harder to come by so this may not be an option in your area.
Finding Cheap Home Insurance
Finding the most affordable home insurance will take some research. But by asking the right questions, utilizing discounts, and bundling other insurance policies, you can find cheap home insurance. There’s no reason to overpay if you can find a reasonable policy with appropriate coverage. Do you think you are paying too much for your home insurance policy? Let us know your thoughts in the comments.
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