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How to Save Money on Home Insurance

How to Save Money on Home Insurance

All homeowners know the pain of trying to save money and find the best possible insurance for their house at a great rate. Because a house is the most expensive item that most people own, it is critical to have it well insured to protect the financial interest of the owner. This is true both on the casualty insurance and on the liability side of the policy. It requires some thought and effort to find and purchase the best policy to cover a house, but the work can get you a good policy for a decent price.

Make any needed exterior repairs before shopping for new insurance.

Almost all insurance companies that insure houses require some form of external inspection of the property. In most cases, the agent will take pictures of the house and forward them to the underwriters for their consideration. These pictures are scrutinized for potential problems that could lead to future claims. Putting on a needed roof, painting cracked and peeling window frames, and improving the overall outside appearance of the building will play well in these pictures. A property that looks properly maintained and in good condition will lead to lower insurance rates, and the policy may be issued faster.

Shop multiple insurance companies for quotes.

There are two ways to do this. If you go to a broker or agent that can connect you with more than one company, ask for quotes from each company. When dealing with captive agents who are committed to sell for only one provider, go to several agents to get quotes. Carefully evaluate the amounts and types of coverage that each company is offering. If you only consider price, you may end up purchasing inadequate insurance. Pay attention to the terms of the policy to be sure about what is being offered.

Keep the house occupied.

Insurance companies do not like to insure vacant houses. Vandalism, break-ins and arson are all real possibilities when the property is empty. If you cannot live in the house for a time, make sure that window coverings are in place and the exterior of the house looks maintained. Keep the shrubs and grass trimmed and neat. Park a car in the driveway. Make the house look lived in. If you intend to leave the house vacant for an extended time, you should inform your agent. Should you have a claim and the company finds out the house is vacant, they can refuse to cover your claim.

Leave off the extras on the coverage.

Like anything else that you buy, home insurance costs more if you elect to have more options included in the policy. You may choose to not cover a small shed in the backyard if its loss would not be a catastrophic loss for you. In most cases, you can live with lower liability limits than insurers suggest when a policy is quoted. Discuss these options and others carefully with your agent before agreeing to allow them to be added to the policy.

Bundle other insurance with your homeowners policy.

Insuring your home, car, boat and other possessions with the same company usually means discounts. Investigate the amount of the discounts with several companies. Not all companies will give you a great rate on car insurance or some other policy. You may find that the cheapest bundle will come from a company that charges slightly more for smaller policies and gives deeper discounts on the larger ones. Shop with your eyes open and the best rates will be easy to see.

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