Need Homeowners Insurance? Follow These 3 Tips
If you are buying a home for the first time, you're likely aware that home insurance is incredibly important to have. If you have a mortgage, this would be a requirement by your lender to move forward with the closing purchase. Here are a few tips that you should know before you start shopping for insurance.
Provide Your Home With Additional Protection
Your home insurance provider likes seeing that you are taking steps to make your home more safe and secure, which will help you save money over time. Anything that you can do to reduce the risk of needing to use your home insurance, or reduce a potential claim, is going to result in a lower premium each year.
For example, having working smoke detectors in your home will reduce the chance of having a devastating house fire. Having a security system will deter thieves from breaking into your home, which can cause damage and the need to replace stolen property. Having a sump pump can help prevent you from having water leak into your basement, avoiding water damage.
Consider A Higher Deductible
If you are looking to save money on your home insurance, the best way to do it is to increase your deductible. This is how much you pay when the time comes to use your insurance. A higher deductible means that you are less likely to use insurance for smaller claims, which prevents the need for the insurance company to pay for the rest. In exchange, you pay less for your home insurance each month.
One thing to keep in mind about a high deductible is the need to have the cash on hand to cover it. If you are in a situation where you need to use home insurance, not having enough funds to pay the deductible can put you in a bit of a bind. Make sure that you are picking a deductible that fits within your budget.
Combine Multiple Policies
Do you currently have other insurance policies for things like your vehicle? It may be worth moving these car insurance policies over to the same insurance provider as your home insurance. The more business you bring your insurance provider, the more likely they will be to reduce your overall insurance bill. Just make sure that you are getting a comparable insurance policy when you switch to ensure you are not paying for more coverage than you need.