Super storm Sandy’s victims are again in the news as they battle the high cost of homeowners insurance. You may be fighting that same battle whether you know it or not. Homeowner’s insurance is one of those items that is a must. You have to have it! Many people brush over it when they scrutinize their budget for that very reason, assuming that there isn’t much they can do to affect cost. That isn’t true. In fact, financial experts say you should audit your insurance costs every year. In the past that activity was time consuming and labor intensive. But now thanks to einsurance.com it is quick and easy. So here are five strategies that can save you money. These strategies individually do not save a lot but together they can make a difference.
Strategy 1. Shop it!
First, do some online price comparisons. Get rate quotes from several insurance companies using einsurance.com. Don’t select the company strictly on price. Make sure the insurer that you ultimately decide on is a quality company. Ask friends if they have had experience with the company. You can also contact your states insurance board if any complaints have been filed against the company.
2. Raise Your Deductible
Like most other insurance plans, the higher your deductible, the more money you'll save on your premiums. Many people think raising the deductible is a quick fix and it is, if you have the money to pay it should something happen. The most common deductible is $500. You’ll save as much as 25% if you raise it to $1000.
3. Bundle your insurance policies
Many companies offer a discount if you buy more than one policy from them. That’s a discount for auto and home. Usually you can count on a savings of around 15%.
4. Insure the house, not the land
Pay attention to how the company estimates the value of your home. It is your home that is at risk not the land it sits on. So get a true replacement cost that does not include the land's value and buy your insurance based on that.
5. Make your home more safe and secure
Many companies reduce your premium for making the dwelling safer. Install an alarm system, add storm shutters, and reinforce your roof or upgrade your electrical system and you could save on premiums. Check with your company to see what discounts are available.
Audit and Compare Rates at least once a Year
Take a few minutes each year and compare your coverage and rates. At one time, this was a time consuming task but today, thanks to einsurance.com, it can take as little as 10 minutes. Take note of what has changed in the past year. Did you add on to the house or build a garage. Whether you have changed anything or not, complete the audit and compare rates and coverage. You might find substantial savings.
Don’t assume that you have the right insurance at the right price. Compare rates and coverage at least once a year. Use two or three of these strategies to lower the cost of your premium. You want your home to be protected no matter what the name of the storm is, but there is no use over paying for that protection.