4 ways to negotiate home insurance rates
Is your dream home costing you a fortune to insure? Are you tired of feeling like all your hard earned cash is paying monthly fees? If you’re paying too much for your home insurance, maybe now is the perfect time to contact your insurance provider and renegotiate the cost of your annual home insurance premiums.
You can renegotiate your home insurance. You don’t have to be stuck with the same rates year after year. Here are four ways to negotiate your home insurance rates:
Shop around every year
Each year when your home insurance policy comes up for renewal, ask your insurance company if there are any additional ways to save without changing your coverage significantly. This can include discounts for having good credit, not filing any claims in the past and bundling all of your insurance products with the same provider.
It's also a good idea to shop around and compare prices with other insurance companies at the same time. Having a lower quote from another insurance company handy can help you renegotiate a lower rate with your current home insurance provider.
Reconsider your deductible - and maybe increase it
Do you really need a low deductible? A lower deductible means higher insurance rates because the risk of a payout is higher for the insurance company. The more risk they need to take, the higher your rates will be. Increasing the dollar amount of your deductible can save you big bucks on your insurance premiums.
Be sure to also keep the number of claims per year to a minimum to avoid future premium increases. Some insurance providers offer the first claim without any impact to your annual premium costs. Before filing a claim, consult your insurance company or insurance broker to find out if your claim will be worth the cost of future premium increases.
Home improvements can get you a discount
If you've done any recent improvements or upgrades to your home they may result in lower home insurance costs. Improvements, such as installing a home security system, a more energy efficient furnace or ia new roof, could qualify you for a discount on your home insurance rates. Each time you make an improvement, and before you hire a contractor, contact your home insurance provider to find out if there’s a corresponding discount.
Consolidate all policies to save
According to Moneysense.ca, bundling your home and auto policies together “can save up to 15% off the final bill.” That's extra money that can be used towards other goals such as saving for retirement or taking a vacation. If you live with family, you qualify for an additional family discount if you’re all insured with the same company. This can save up to another 10% on the annual cost of your insurance premiums.