Find the biggest discounts when you’re comparing deals on homeowners insurance. Consult with an insurance broker or financial planner who has access to databases that make them source many companies. After you do that, think of membership discounts, especially if you’re an AARP member or veteran. You can also find out if your college alumni association offers discounts for home insurance.
Improve Your Home
If you make small changes and improvements in your home, then you may qualify for lower premiums. It depends on the insurance company, but most would lower rates if your home's structure and build are satisfactory or if plumbing and wiring are good enough. If you live in an older home, go for upgrades first to reduce your insurance premiums. Besides, fixing those pipes and wires can give you a safer place to stay.
Know That Replacement Cost Differs From Actual Cash Value
Know that replacement cost will provide coverage for you if you want to have your home and all your personal property in it totally replaced. On the other hand, cash value, or ACV, is the actual value assigned to your home, but it does not consider the removal of damaged property or zoning permits. With replacement cost, you'll get $1000 for your damaged laptop that cost $1000 upon initial assessment. For ACV, you'll only get the current depreciated cost of the laptop. Investors find ACV more useful while replacement cost matters more to homeowners. ACV premiums will usually cost less, but you'll likely pay more out of your pocket for losses.
Sign Up for a Higher Deductible
For your car, you can save big on your premiums if you only increase your deductible. It works the same way for your home. Go for higher deductibles but make sure that you’ll be extra careful. Otherwise, in the case of house or property damage, you’ll likely to pay more out of your pocket. Prepare yourself to file fewer claims if you’re on a high deductible option.
Opt for an Umbrella Policy
Although it may not necessarily help you save money up front, go for an umbrella policy instead of using your homeowner's insurance to file for a large claim. Umbrella policies may not be that difficult to get if you own a home. Besides, it could really help you in case you got a worker on your roof and accidentally falls while doing the cleaning. An umbrella insurance policy could save your homeowners insurance.
Some Final Words
It’s always better to have home insurance but make sure that you’re not overspending on it. You don't have to think it over. You can just follow the steps and enjoy the full benefits of your homeowner's insurance at no extra cost to you.
At Independent Executive Insurance Brokers, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 624-4815. Get your free quote today by CLICKING HERE.