Home insurance is a must-have especially if you have a mortgage, but that doesn’t mean you can’t try and get the best deal on premiums that you can. There are some insider secrets to save on your homeowner’s policy. You will have to speak with your insurance agent to see which discounts their particular company offers but here are some of the more common discounts available.
Home Alarm System
If you have fire and theft coverage on your policy then many companies will offer you a rebate if you also install a monitored alarm system. These types of alarms will contact fire or police on your behalf if something happens at your home. Monitored alarms have come down in price but that can still be expensive so check with your insurance company about the discount before you buy.
If you belong to AAA or AARP you may also be entitled to a discount from your insurance, again you will have to check with your agent to see if they offer a discount for belonging to either association.
Raise Your Deductible
When you buy your policy most insurance companies will automatically set your policy to a lower deductible, usually around $500. If you increase that amount to $1,000 or higher if you are comfortable then you can save up to 20% on your monthly premiums. The deductible is the amount of money that you will have to pay in costs before your insurance kicks in, make sure that the amount you set for the deductible is manageable in case something happens.
Bundle Your Policies
Most insurance companies will offer you a discount if you are willing to move your car insurance or other insurance policies to the same company. You need to do the math first and make sure that one policy is cheaper than using more than one carrier. Most often the agent will offer the discount to you when you purchase the policy, if not feel free to ask.
Having Good Credit
Many insurance companies will give you a better rate for having a good credit score. This is one more reason to check your credit score at least once a year, also check with your agent to see if the discount is possible.
Last but not least make sure you get quotes from several different companies, the rate between insurance companies can vary drastically. You can talk with an independent agent that deals with multiple companies, they can put together rates from a dozen or more companies for you to look at. Bear in mind that coverage will differ as well, make sure that the policy includes the coverage that you need.