How to NOT Save Money on Home Insurance
In buying home insurance there are many ways to save money and get adequate coverage to protect your home and your family. Your home is your single biggest asset, yet there are many ways that we over insure and do not adequately shop around to get better rates. The following are the most common ways to NOTsave money on home insurance. If you do not follow these steps, you are likely to be paying an additional 5-20% higher than other customers.
Getting More Coverage Than You Need
Many people get more coverage than they actually need. Make sure you are covered for the current replacement value of your home, nothing more and nothing less. This will get you the best value and ensure that you are NOT paying too much.
Having Too High of a Deductible
If your deductible is too low, you will pay much higher premiums and not save any money. By doubling your deductible, say increasing it from $500 to $1,000, you will save far more in premiums and avoid costly pitfalls. Some companies deduct up to 15% from your annual premiums for this type of deductible switch.
Buying Home and Auto Insurance From Different Insurers
Insurers love multi-line clients. Chances are that if you only have one product from an insurer, they will at some point try to upsell you more insurance. If you have home insurance with one provider, and car insurance with another, you will find that on average you will pay 10-20% more than if you have both with one provider. There are economies of scale that allow an insurer to pass these savings on to you.
Not Asking for a Discount
One of the most common ways to not save money, is simply to not ask for better rates. Many companies have additional discounts they can give their “best” clients. Simply asking for a discount is one way to ensure that you are getting the best rates. By simply “asking” you may be able to get an additional 5-10% discount.
Do you think your home insurance rates are too high? Get a home insurance quote today!