For most people, homeowners insurance is a necessity. If you have a mortgage you will need to have your home insured. Not only is it a necessity, but it is a smart thing to insure. It may be your most valuable asset and you need a place to live so it should be insured. With homeowners insurance comes a lot of opportunities for increasing or decreasing your premium. Here are five quick tips that can save on your premium:
- Increase the deductible. This is the easiest way to decrease your premium without any outlay of cash from your pocket. The higher your deductible, the less risk the insurer is taking so the lower your premium.
- Shop around. There are literally hundreds if not thousands of companies willing to insure your home so it pays to shop around. If you already insure your vehicles with another provider check with them to see if there is a discount for carrying multiple policies.
- Improve your credit score. Your credit score doesn’t just affect your interest rates and the ability to get a loan, but it also has an impact on things such as insurance premiums. More and more insurance companies are using credit score as a factor in determining how much your premium will be or to offer discounts.
- Install a security system. While putting a sign in your window that says “beware of dog” may deter some burglars it won’t be enough to reduce your premium. A complete security system does have an initial cost but it can prove to pay for itself many times over.
- Stop smoking. Unattended cigarettes are the leading cause of house fires, so by not smoking you decrease the risk of a fire-related claim. If you were a smoker when you took out the policy but have recently quit be sure to contact your insurer and let them know.
