Confessions of a Compulsive Organizer

Frugal Living: 4 Ways To Save Money On Homeowners Insurance

by Ricardo Hart

For many homeowners, keeping up with the cost of homeowners insurance can put a huge strain on their monthly budget. If you have found yourself struggling with this same problem, you should know that there are several ways to lower the cost of your insurance premiums without sacrificing the coverage you need. The four tips outlined below can help you to accomplish this goal.

Consider Raising Your Deductible

One of the easiest ways to get lower insurance rates is to choose a higher deductible. This is because the higher your deductible is, the lower your insurance company's liability will be if you should ever need to file a claim.

While this option is very effective, it will not be right for everyone. If your financial resources will not allow you to cover the cost of a higher deductible in the event of an emergency, you will need to choose another option for lowering your insurance costs.

Bundle Your Insurance Policies With One Company

If you require more than one type of insurance policy, you can save money on all of your insurance needs by choosing to bundle these policies with just one company. For instance, if you need to purchase both home and auto insurance, you can receive a discount on both of these policies by choosing to purchase both policies from the same company. In some cases, you may even be able to get a one time credit for switching from another insurance company. This one time credit is in addition to the ongoing bundle discount that you will enjoy.

Make Sure You're Not Paying For More Coverage Than You Need

People often make the mistake of confusing the purchase price of their home with the cost of rebuilding their home. Consequently, it is quite common for individuals to end up paying for more coverage than they truly need.

When you purchase your home, the total cost of your purchase will include both your home and the property that it is built on. However, when rebuilding after a disaster, you will only need to cover the cost of your home since you already own the property it will be built on. Consequently, there is no reason to insure your property for the full purchase value.

Install An Alarm System In Your Home

Installing an alarm system in your home will help to reduce the risk of your home being burglarized or vandalized. As a result, you will also be at a much lower risk for filing an insurance claim. Since insurance companies typically base their premiums on your risk of filing a claim, the lower your risk is, the lower your insurance premiums will be.

The best part about choosing this money saving option is that not only will you be saving money, but you will also be helping to provide your family with the most secure home possible. Talk to places like Sean Hiller Allstate for more information.