Home owners insurance is something that every homeowner needs and is actually required for homes that are financed in any way. Of course even homes that are paid for should be protected with a good home insurance policy. These policies may seem expensive when premium payment is due; however, they are a great value considering the amount of protection they can provide.
It is important to know that there are ways homeowners can lower their home insurance premiums. For the lowest home owners insurance, be sure to consider some of these ideas that can provide savings on insurance premiums.
Insure What You Own - Not More!
For fear of finding themselves underinsured if a loss should occur, many homeowners actually choose to over-insure their homes and possessions. While the idea behind this may be sound, a better idea is to get an accurate idea of the total value of a ho me and its contents, then purchase enough home insurance to cover that value. Maintain an inventory of possessions and their value, purchase the appropriate amount of coverage, and review home owners insurance policies every year with an experienced insurance agent. Personal property is always in flux and home value changes nearly every year, making it necessary to adjust coverage to be insured closer to the actual value being covered.
Keep A Safe and Weatherproof House
Home insurance premiums are largely dictated by location, home construction, and other associated risks. A good way to reduce premiums and even get discounts is to invest in home protection such as security systems, smoke alarms, and indoor sprinkler systems. Non-smoking homeowners often receive additional discounts, so be sure to let your agent know that this applies to your home.
As for the home itself, learn what exterior and roofing materials are considered safest for its location and consider installing them. Premiums are lower when there is less risk of damage to the home because it is well protected from common weather issues.
Understand That New Construction Insures for Less
While this might not affect some homeowners, it could affect those looking for a new home. It costs less to insure newer homes than older ones, mostly due to the cost involved in repairing older homes. It is also more likely that older homes will sustain more damage than newer ones; the repair of older homes may require materials or methods no longer in use. Repairs can sometimes be more involved and costly. Buying a newer home rather than an older one can mean lower insurance premiums.
Consider Available Discounts
Home owners insurance companies offer many discounts to homeowners that can lower policy premiums when certain conditions are met. Some of these include discounts for being located near a fire station, specific types of home construction, and consideration as mentioned above for security systems, sprinklers, and even having a fire-resistant roof. Other discounts that most home insurance companies offer are a discount for multiple lines of insurance with the same company, special discounts available to certain alumni or business association members, and discounts for being long-term customers of the same company.
It is essential that homeowners protect their investments with the appropriate home owners insurance coverage. On the other hand, there is no reason to pay more for home insurance policies than is necessary. Smart homeowners that make the effort to keep a safer home and research the many discounts that could be available can definitely save on their homeowners insurance premium. To learn more about ways to save on home owners insurance, contact an experienced homeowners insurance company today!
