We are all looking to find ways to increase savings during this economic recession. Reducing the cost of your home insurance policy can help in this regard. Here are six ways you can lower the costs.
1. Stay with the same insurer. You can take advantage of discounts offered by your insurer if you purchase all insurance policies with one carrier. For example, having a homeowners and automobile insurance with the same company can yield up to 15% discount on your premium.
Moreover, the longer you remain with the same insurer, the better chance you have of obtaining additional discounts. For example, homeowners who have been with a company for five years or more may qualify for a special discount.
2. Increase the deductible. While you may currently have a $500 deductible, by raising it to $1000 you can save up to 25% on your premium.
3. Add security features. By installing smoke alarms, burglar alarms, and special locks, you can save as much as 20% on your premium. To find out if your insurance company offers these types of discounts, give them a call and determine how much you may be able to save in this regard.
4. Age-related discounts. Some insurance companies offer discounts to individuals who are 55 or older and retired. Check with your company and ask if they offer such discounts.
5. Annual review of your policy. This is another way you can cut costs on your policy. If you have expensive items in your home that are covered under a floater attached to your homeowner’s plan, these items will depreciate each year and may no longer have to be covered.
6. Good credit. One of the components used in determining how much you will pay for insurance is based on your credit rating. Therefore, to keep costs down it’s a good idea to ensure that you check your credit report and FICO score annually and correct any errors you detect on the credit report. Do not skip any monthly payments on credit card bills or loans, and maintain a good credit history.