The Reasons Why Many Homeowners Pay Too Much for Home Insurance
We all want to get the best value for the things we pay for. This should be especially true when it comes to your home insurance costs. Many people aren't even aware of the fact that they are paying more for their insurance than they should be. While it is vital to have homeowners insurance, you certainly don't want to pay more for it than you need to.
Setting Deductibles Too low
Did you know that your deductible amount plays directly into what your premium payments are? Here is the formula: high deductible = lower premiums. This might seem like a simple decision to go as high as possible on your deductible, but you should take time to consider what increasing your deductible can man. While a higher deductible can reduce your insurance rates, you shouldn't increase your deductible higher than you can expect to comfortably pay out of your own expenses, if the need should arise. What sounds great now may be too expensive if you should have to actually pay the deductible. Setting up a small emergency fund to pay for deductibles is a great idea.
Unnecessary Home Insurance Riders
You should have the necessary coverage, but pay attention to insurance riders on your policy that you may not need. If you live in Idaho, you obviously don't want to pay for a hurricane rider on your insurance policy. It is good to have adequate coverage, but take a look at your policy to see if there is any unnecessary fat that you can trim off, in the form of unneeded riders.
Reduce Premiums with an Umbrella Policy
Umbrella policies can help you to bring down premium costs. Umbrella policies can provide home and automobile coverage. They can be used for claims on property damage or injury liability that goes higher than the standard homeowners or auto policies allow. The umbrella policy gives you broader protection. Look into an umbrella policy to use in conjunction with a reduction in coverage amounts to help ease the financial burden of your insurance coverage.
Insurance Discounts Add Up
Don't forget about discounts to get cheaper homeowners insurance! If you have added a security system to your home or have multiple insurance policies from the same company, you may be eligible for some great discounts on your insurance. Discounts can be your best friend when it comes to saving money, so be sure to talk with your agent to see if you are eligible for any.