Homeowner’s insurance is a necessity for every homeowner. Nearly all mortgage companies can’t provide a loan or finance a residential real estate deal if proof of coverage for the entire value of the home can’t be provided.
Home insurance can be costly especially for people who live in high-risk areas like properties near major waterways or along earthquake fault lines. If you live in these high-risk areas, you’ll pay more for coverage. You may even be required to pay premiums that are higher.
Though you can’t avoid buying insurance, there are several ways to reduce its cost. Here are a few tips to ensure you get the best coverage without paying for more:
Install smoke alarms and other security devices or systems.
Install a security alarm monitored by a central station or that’s directly tied to your local police station because it will help reduce your premiums by 5 percent or even more. To get a discount, you must provide central monitoring through a bill or contract with the insurer.
Most homes nowadays have smoke alarms. Installing smoke alarms can help save you 10% or even more in your premiums. Most importantly, smoke alarms can save lives.
Increase your deductible.
Just like your health or auto insurance, you’ll pay a lower annual premium if you choose to pay higher deductibles. But the issue with increasing your deductible is that smaller claims or problems one has like damaged drywall or leaky pipes, which will only cost a few hundred dollars in repair, will likely be absorbed by the homeowner.
Ask about multi-policy discounts.
Many people are not aware that they can save more through the discounts they can get. A lot of insurers give a discount of more than 10 percent to those who maintain other contracts with them. For instance, if you have bought auto insurance from a particular company, you might as well get have your home covered with them also.
Plan ahead if you want to add another structure.
Before even planning of constructing an addition to your home or another adjoining structure to the home, you should also consider the materials that you’re going to use. Usually wood-framed structure will cost more to insure because they are risk to fires. Constructions that are made of cement or steel won’t be more pricey to insure because they are less likely to get damaged by fire and all other elements.