Saving money is important in many households. With the right choices, there are ways to save money on your home insurance without sacrificing the coverage you need.
Here are some possible ways to save money on your home insurance.
Consider a higher deductible
The deductible is the part of the claim that you pay and by using deductibles, insurers can help keep coverage costs lower for everyone. In effect, a deductible serves as a limited type of self-insurance. You cover claim amounts below your deductible, while the insurer picks up the cost of larger claim amounts that exceed your deductible. By choosing a higher deductible, you are accepting a larger risk, which can lead to lower premiums. However, it is also important to be sure the deductible you choose is realistic and fits your household budget. Remember, if you have a loss or damage to your home, the deductible is real money you will have to pay out-of-pocket.
Avoid smaller claims
It is often best to think of insurance as coverage for large losses rather than coverage for every possible loss. Your claims history affects your insurance rates, so smaller claims can end up costing money in the long run. If possible, avoid filing for smaller claims that you can repair yourself or pay someone to repair, and save your insurance policy for larger claims that have a more dramatic financial impact on your household.
Bundle your coverage
Many insurers offer additional discounts if you purchase more than one type of insurance policy from the same company. For example, if you purchase both home insurance and auto insurance from the same insurer, you can often earn an extra discount on your home insurance policy. Similarly, some insurance companies also offer additional discounts if you bundle your home insurance policy with an umbrella policy, which is a special type of insurance policy that can extend your personal liability coverage limits.
Review your policy regularly
Over time, insurance needs change. Fortunately, your policy’s coverage can be changed as well. Many parts of your home insurance policy can be customized to meet your current needs. Most insurers recommend a policy review once every 12 to 18 months, which helps you identify coverage you no longer need or new coverages you may want to add to your policy.
If you have not reviewed your home insurance coverage lately, reach out to your broker to schedule a review at your convenience.