7 Ways To Lower Homeowners Insurance Rates
By: ROS Team
Homeowners’ insurance is a necessity. In the event of any loss or calamity, insurance covers most damages that a home has sustained. It ensures the property and assets are well-protected and promises a safe and sheltered future.
However, home insurance tends to be a luxury for some. With their tight financial situation, their pay rates could break their wallets. Thus, while the option of not having insurance is there, one also gives up potentially life-saving protection.
Fortunately, there are ways to lower homeowners insurance rates:
Choose a Good Insurance Company
Do your homework! Reading through policies, consumer guides, and price ranges may be a tedious task, but it is a task you must not risk fumbling. Shop around and look through the offers of several insurance companies. Take your time to compare homeowners insurance and choose what deal works best for you.
How to narrow your choices down? Look through complaints history. Make sure the company is reputable by reading reviews and ratings. Do not study the price ranges alone but evaluate the quality of their service. It will help you avail of the lowest rates at the best customer service possible.
Improve Home Security
Be proactive against theft and burglary by improving your home security. Not only does it protect you, your home, and your assets, but it also lessens the likelihood that you would ever have to file an insurance claim.
Investing in deadbolt locks, smoke detectors, sprinklers, and burglar alarms are a few ways to ensure that your home is safe and sound. Your insurance company will actually give you discounts for being a vigilant homeowner and installing safety features! Improving home security is one way to stay safe and save on insurance rates.
Enhance Disaster Resistance
Did you know that one out of fifty homeowners claims insurance for water damage every year? It may come from rain, hail, ice dams, and other weather-related causes. So save up from more insurance rates by enhancing your home’s disaster resistance.
Invest in stronger roofing, storm shutters, and sturdy materials against the threat of any calamity. Renovate systems such as electricity, heating, and plumbing beforehand to better withstand disasters. If your home does not damage easily, there are lesser insurance claims to make. You can even avail of the discounts offered for disaster-resistant homes!
Seek and Avail Discounts
More often than not, people are unaware that they are missing out on many good insurance deals. If you want to save up on rates, seek out more discounts and comply with the company requirements to avail of any of them.
There are loyalty discounts and bargains for low-maintenance homeowners who have not had an insurance claim in a while. As previously mentioned, there are also discounts for safer and disaster-resistant homes. Homeowners who are retired, married or widowed, a veteran or currently in the military, and even non-smokers can also avail of certain deals.
Raise Your Deductible
An insurance deductible is the sum of money you must pay for an insured loss before your insurance provider covers for you. A higher deductible means that you are responsible for paying a greater amount of whatever your loss has cost.
If your goal is to cut insurance costs, then raise your deductible. Higher deductibles generally mean lower premium rates, but doing so also poses a risk. Your pockets could run dry if there are emergencies you cannot afford to pay for. Just remember to weigh your options and do what is financially beneficial for you at the moment.
Maintain a Good Credit Score
Your credit history is almost inseparable from you. In the eyes of a company, it dictates your ability to pay them in due time. It is also indicative of your overall financial status. Thus, brand yourself as a responsible payer and maintain a good credit score to lower your insurance costs.
Insurance companies evaluate your credit score in deciding the rate of your premiums. While a bad score does not necessarily disqualify your application, companies will see you as a high-risk customer who may not be able to pay them back. Thus, they can charge higher rates for your policy!
File Your Claims Wisely
Besides credit history, another indicator of a responsible customer is their number of insurance claims. Too many claims could prompt insurance companies to increase the rates of your premiums or even cancel your policy altogether.
Having too many insurance claims labels you as a high-risk customer. Companies may refuse to insure you all in all. If your goal is to save up, filing your claims wisely will lower your insurance policy rates and save you from being penalized. Responsibility is key!
Final Thoughts
Indeed, home is where the heart is. And having the right insurance ensures that it is safe, sound, and livable. Don’t even think of risking your safety by giving up homeowners insurance because there are ways to save for it. Review the ones discussed above and keep you and your home well-protected!
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