Homeowners Insurance: Tips for Getting the Coverage at Reasonable Rates
October 4, 2011
Getting a homeowners’ insurance policy can cost you a lot. People who reside in high-risk zones such as nearby major waterways, earthquake prone areas or other high claims regions will have to pay more premiums for coverage. However, even people with homes in relatively low-risk areas could pay $500 to $1000 per annum for a basic coverage.
Although you can’t do without a home insurance, the good news is that there are some ways, which will help you in getting the right coverage at reasonable rates.
Install Smoke Alarms and Security System
Smoke alarms have become a standard feature in modern homes. Homeowners with smoke alarms installed in their homes can get a discount of up to 10% on annual premiums.
Installing a security system that is supervised by a central monitoring station, or that is connected directly to a police station in your locality, will bring down the annual premium on your insurance by nearly five percent. To get this rebate, you must submit the proof of supervision by furnishing the copy of contract or bill to your insurance company.
Raising Deductible
You can save a lot on your annual premiums by raising your deductible. However, higher deductible means you won’t be able to file claims for minor damages such as a broken window. You will have to pay for them from your own pocket.
Seek Multiple Policy Rebates
Several insurance companies offer a rebate of up to 10% to their clients that maintain other insurance policies such as health or auto insurance in the same place. Save money by getting other types of coverage that you need from your homeowners’ insurance company.
Planning for Additional Construction
If you are planning to construct an addition or another structure on your property, you should think about the materials that you are going to use. Usually, structures made from wood will cost more money to cover as they are highly flammable. On the other hand, structures made from steel or cement will cost less as they can withstand fire and extreme weather conditions relatively better.
Review and Compare Policies Regularly
You must compare the different insurance policies as well as the premiums charged by other insurance providers to your own at least once every year. Additionally, you should review your current insurance policy and look for any changes that might have happened, which could reduce the annual premiums. For instance, you may get insurance at lower premiums, if a new fire substation has been constructed near your home or a fire hydrant was installed within 100 feet of your home.
