Monthly Archives: April 2015

How to Save Cash on a Home Insurance Policy

Most of the time, moving into a new home or apartment is an exciting and fun enterprise. However, a new place also comes with its fair share of headaches and grown-up responsibilities. Professional movers, such as those available at North American Moving Services, can help with the relocation, but that still leaves the particulars of settling in,such as purchasing insurance. There’s nothing wrong with homeowners experiencing trepidation at the prospect of sitting down and signing onto a new policy. That said, no one should let this hesitation get in the way of actually making the commitment. Homeowners will want to ensure they are getting the best deal for the best coverage. To this end, here are a number of tips that can help homeowners pay less for quality insurance.

Invest in a security system and maintain smoke detectors

Not only is a quality security system ideal for preventing theft and damage to a home (as well as its inhabitants) but it can also help lower annual insurance premiums—sometimes as much as five percent. All the homeowner needs to do is provide proof of an installed security system to the provider.

Insurers also like to know that a home is outfitted with fully functional smoke detectors that are maintained at least once a year. This can wind up saving the homeowner ten percent or more on yearly premiums.

Raise the deductible

Like any other form of insurance, the higher the deductible, the lower the cost of premiums. Therefore a higher deductible should reap savings for the homeowner over time. That said, a high deductible will shift all cost of minor home repair issues (leaky pipes, broken sprinkler head, etc.) straight to the homeowner.

Discounts on multiple policies

Most homeowners have auto and health insurance as well. Some home-insurance providers will offer discounts for those who bundle all of these types of insurance under one roof. It makes sense for the homeowner to inquire about any such discounts—sometimes as much as 10 percent—before signing onto a certain policy.

Take construction into account

Anyone planning on upgrading their home with an addition or other project should consider the insurance ramifications. For example, those who want to add a wood-framed structure to their home should know that this will likely raise insurance premiums because of the flammable nature of the material.

Also, outdoor items like swimming pools can add to the overall cost of insurance, as can trampolines. That’s because these items, despite providing entertainment, can be dangerous and therefore can increase insurance by as much as 10 percent.

By following these simple tips, homeowners can expect to save quite a bit of money on home insurance. And finally, those who actually end up paying off their whole mortgage can expect great savings on insurance, as providers figure that those who own their home outright will have a greater desire to maintain it. Also, common neighborhood changes—such as the placement of a fire hydrant within 100 feet of the home or the proximity of a police or fire substation—will often lower the price of insurance premiums.