Home owner insurance is necessarily for everyone. It is very expensive, especially for those whose live in highly risky areas like earthquake prone areas or major waterways. Home owners who live in high claim areas will have to pay more premiums than others. They have to pay or forced to pay premium in thousands of dollars, which could be too much for the rural population.
But the good news for you is that you can minimize the cost of your home insurance by getting right coverage and compensation for your home.
Simple ways to save money on home insurance
Here are 6 simple ways for saving money on home insurance specially for whose people who live in high claim areas.
1. Maintain Security System in the home
There should be smoke alarm and burglar alarm in the home. Burglar alarm in the home lowers home owners annual premium by 5% or more. These burglar alarms are monitored by the central stations or tied directly to the police stations. Home owners have to give proof of central monitoring to an insurance company in the form of a bill or contract in the bill form to get discounts for this.
Another way to obtain discount is installing smoke alarms in older homes as they are already standard in modern homes. By doing this, Home owners can get a discount of 10% or more in annual premium. In fact, they can save your life in case of fire in the home.
2.Raising higher Deductible by home owner
Higher the deductible home owner pay, lower is his annual premiums. But there is problem in choosing to pay more deductible because sometime smaller claims such as broken windows and leaked pipes fixing costs only few dollars, which will most likely to be absorbed by the insurer itself.
3. Attempt to get Multiple Policy Discounts
Many insurance companies usually give their customer discounts of 10 % or more if they have 2 or more insurance contracts like auto insurance or health insurance from their company. Try to get quotes for other types of insurances from the company which you have homeowner insurance as well. By doing this, you can save more money on 2 annual premiums.
4. Plan for building additional structure of the home
Consider material which will be used if home owners is planning to build another structure adjacent to the home. If you use wooden materials and frames, their insurance cost will be more as they are highly inflammable. Choose steel frames and cement structures instead of wooden frames for building additional structures as insurance cost will be less. They have less chances to succumb due to bad weather or to fire. This will save your money by minimizing the home owner insurance cost up to a great extent.
5. Pay Off your Mortgage
Paying off a mortgage is not easy at all but pay off it so that you will not liking to face premium drops. The simple and only reason for doing this is that according to insurance companies, you will take good care of your home if you own it upright. We know it seems very easy to say than doing.
6. Reviews policies and compare them with the policies of others
Being an insurer, you should compare the cost of your policies to the other at least once in a year and review your policy and note chances that have occurred in your existing policy which can lower your annual premiums. If you notice any changes occurred in your existing policy, notify them to the insurance company in the form of pictures as a proof to them so as to lower your premium.
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