How to Pay Lower Homeowners Insurance Premiums

Among the many things that people need to pay for when buying a home is homeowners insurance. This can be a burden for some, especially if you don’t have a sufficient budget. The good news is that there are actually ways that can help you reduce the cost of insurance premiums. This article will share with you some helpful tips that can allow you to get the coverage you need for your home without having to pay a fortune for it.

• First of all, you need to determine the kind of coverage you really need. Many homeowners end up paying more because they choose options that cover their property for risks that are very unlikely to happen. For example, if you do not live in an earthquake zone then you don’t really need to get earthquake coverage. As a rule of thumb, don’t get coverage you don’t need.

• Secondly, make sure that your home is not “high-risk.” There are factors that make your property risky for insurers. For example, a lot of insurance companies consider certain dog breeds such as Rottweilers and Pit Bulls as dangerous and potentially risky, and as a result, they would charge higher rates. Another factor would be the materials used to build your house. Based on studies, homes made with non-flammable materials such as concrete and bricks have lower premiums than those made of wood.

• Thirdly, raise your deductible for homeowner’s insurance. Obviously, if you let the insurance company assume every risk, then you should expect to pay higher premiums. However, if you raise the deductible to maybe a thousand dollars or more, then you could significantly get lowered premiums.

• Next, you should consider buying both your homeowner’s insurance as well as your auto insurance from the same company. There are insurance companies that give you discounts if you avail of more than one insurance package from them. This can very well save you somewhere between 5% and 20%,, which would mean a huge difference in premiums.

• Lastly, take time to compare rates. A common mistake that homeowners make is that they go with the very first insurance company they come across with. You should take the time to scout for better rates and make price comparisons. This way, you could end up with the best deals available in your area for homeowners insurance.

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