Budget Concerns: How Much Insurance is Enough?

Lowering The Cost Of Your Homeowners Insurance

26 September 2016

Dustin Duncan

Investing in the purchase of a home represents a significant financial commitment. In order to protect your investment in the event of a natural disaster, break-in, or other mishap, you will need a quality homeowners insurance policy. Good homeowners insurance doesn't have to be expensive, and there are some simple ways that you can reduce your monthly premium rates.

Try these three things when trying to lower the cost of your homeowners insurance in the future.

1. Evaluate your home's liability.

When it comes to determining how much you will pay for homeowners insurance each month, your insurance company will likely examine your home's liability factor. If your home is more susceptible to damage, then the insurance company will view your property as a high risk.

By reducing your home's liability, you can reduce the amount of risk associated with insuring your property. Doing something as simple as installing smoke detectors or adding an alarm system to your home can significantly reduce your homeowners insurance premiums each month.

2. Shop for a better rate.

Just because you secured your homeowners insurance through a specific company at the time you purchased your property does not mean that you are obligated to remain insured through that same company. If you want to lower your monthly insurance premiums, it can be beneficial to obtain coverage quotes from competing companies.

Be sure that you understand exactly what type of coverage you are paying for so that you can request a quote for comparable coverage. By shopping around for a better rate, you can reduce the amount of money you pay for your homeowners insurance in the future.

3. Bundle your policies.

Most insurance companies offer a variety of policy options to their customers. Statistics show that the average person is able to save 15.97% when choosing to bundle their homeowners and auto insurance policies.

Your insurance provider may offer additional discounts for adding a life insurance policy to your bundle as well. Ask your insurance agent to help you determine how bundling your existing policies could help you lower your homeowners insurance costs.

Finding ways to reduce your homeowners insurance premiums can be a great way to save money on your overhead housing costs each month. To take advantage of insurance discounts, reduce your home's liability, shop competing companies for more attractive rates, and bundle your insurance policies to maximize your potential future savings. 

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