If you are looking to cut household bills, take a look at your homeowners insurance policy and try these Insurance Information Institute tips when shopping for homeowner’s insurance or trying to find ways to reduce your premiums:
1. Raise your deductible. An increase from $500 to $1,000 could save up to 25% on your annual premium.
2. Check the financial health of any homeowner’s insurance company you’re thinking of buying a policy from. Ask friends and family if they’ve had any experience with the company to find out if it handles claims fairly and efficiently.
3. Don’t drop flood insurance to cut costs. Standard homeowner’s insurance doesn’t cover flood damage, and 25% of all flood losses occur in low-risk area.
4. Look into multi-policy discounts. Buying several policies with the same insurer, such as homeowner’s, auto, and life, usually gets you a discount on all the policies.
5. If local home values have fallen, insuring your home for its real estate value may cost less than insuring it for its replacement value (the cost to rebuild) but will leave you without enough money to rebuild after a disaster. Don’t opt for home value coverage unless you can afford to cover the excess replacement costs.
For more useful information about homeownership, talk to a Realtor® today.