There are many factors which can affect your property insurance rates. However, many of these will probably be out of your control. Still, do not fret! There are some easy steps you can take in order to save money on property insurance. If you want to find out how to lower your rates and save money, keep reading the following tips!
Top tips to save money on property insurance
Get Several Quotes
Researching and looking into different insurance companies is very important. This is because their costs tend to vary quite a bit. For example, the differences can go anywhere from a few hundred dollars up to even a thousand. Therefore, if you want to avoid losing money, do proper research to find the most reputable public adjuster. Namely, it is always good to ask friends, family, or even colleagues for their input. Some of the questions you should focus on are:
- Who is their insurance provider?
- How long have they been with that company?
- How satisfied are they with the company?
- Have they ever had to make a claim?
- What was their experience in doing so?
Furthermore, keep in mind that doing this research and finding the best company takes some time. This is because you’ll have to call them and provide very detailed information if you want to get a quote. However, you will not waste your time by doing this. Since you will end up being able to save money on property insurance, your time will be very valuable. In the instance you’re worried about flood damage, looking into many different insurance companies will help you loads. Specifically, you will feel more comfortable in your home knowing that your belongings are always safe and insured.
Choose the Higher Deductibles
Firstly, your deductible is the amount of money you’ll have to pay out of pocket when you file a claim. After you pay your deductible, the insurance company will take care of the rest. Therefore, the higher the deductible you choose, the lower your monthly premium will be. However, it is very important to keep track of your finances. This is because a higher deductible is good only if you are able to cover it completely each month. A great option for keeping track of your savings is to use tools like automatic savings accounts. Namely, these are amazing for helping you put aside money every month. In doing this, you will easily be able to pay your insurance deductibles and repair all costs.
Improve Your Credit Score
It is an unavoidable fact that your credit score has a direct effect on your premium. Insurance companies use your credit score to predict possible losses. Namely, the higher your credit score is, the chances of you filling a claim are less likely to happen. To put it simply, people with good credit scores are better and safer options than those with lower scores.
Therefore, it would be amazing if you check your credit score before you start looking into insurance companies. In doing this, you won’t come across any surprises when you begin negotiating with different insurance agents.
Don’t look over smaller repairs
Usually, most homeowners don’t want to file claims for small repairs. This is because they don’t want to raise their premium over less important damages. However, you shouldn’t worry about this. Namely, more than 55% of homeowners who filed a claim of less than $5,000 didn’t have their premium increased. On the other hand, those who filed insurance claims less than $200 per year did experience an increase in their premium. Therefore, don’t look over the mold damage insurance claim. In doing so, you would only be hurting your premium.
However, keep in mind that the increase in the cost of the premium depends on each insurance company. For this reason, it is very important to talk to your insurance agent when you’re getting a quote. Specifically, you should focus on how much your premium can go up. Also, ask for how long can it go up if you file a claim which goes over your deductible. In doing this, you will be able to save money on property insurance in the long run. For example, if you know your premium won’t increase after a small claim, it makes sense to fix that leaking roof of yours. Namely, it’ll be much more financially smart to let the insurance company pay for the expenses while you keep your premium intact.
Pick and choose your Policies
Insurance companies usually offer different types of policies. For example, there are auto, home, life, and boat insurances. Namely, you can save money on property insurance if you bundle your policies together. Although the discounts will probably vary depending on which company you choose, they can usually be around a few hundred dollars.
Research other Discounts you can Get
Discounts are the best way to save money on property insurance. Luckily, insurance companies offer discounts for all kinds of situations. Some of the most common discounts homeowners apply for:
- Age discount – Homeowners who are over the age of 55 or are in retirement usually get a ‘’senior discount’’. If you’re lucky, this discount can be as high as 10%.
- Gated Community discount – Since homes in gated communities are less likely to be a target of robbers, you may get a discount. The average discounts go from 5% all the way up to 20%.
- Claims-Free discount – If you don’t file a single claim in 10 years, you can easily save up to 20% on your property insurance. However, this means you have to stay with one company over a period of those 10 years. Although it seems daunting, many homeowners achieve to go through and get it.
- Homeowner’s Association discount – If your neighborhood has an HOA, you are most likely to get a discount of 5-10%.