Most of us don’t realize, but there are several checks that we can undertake to minimize our premium outflow on home insurance.
First is to raise your deductible. Deductibles are the amount that one has to pay towards a loss before the insurance company pays the claim. If your deductible is higher, you will be able to save more on your premium. The usual recommended deductible is $500. If you manage to raise this to $1000 you can actually save as much as 25% on your premium. Also, if you live in a disaster prone area, you will be eligible for separate deductibles for the given hazard.
While buying your homeowner’s insurance, don’t add the value of the land as the land itself is not prone to damage. If you add the value of the land, you will be jacking up your premium for no reason. Try to buy your auto and home insurance form the same insurer and there is a very good chance that you can squeeze out an additional 10% to 15% discount. Always prefer a private insurer to a government insurer as the former are usually cheaper. Besides these checks, always review your homeowner insurance once a year. You may have discarded some expensive things or they may simply worn out, for which there will be no use paying a premium.
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Your Comments
Our house burned down last year, and we lost everything that mattered to us. We didn’t have any pictures of our things, no receipts, no record of what we had. The insurance company made it very difficult for us to get our things replaced.
We wanted to be sure that our things were safe if something like that ever happened again and I recently found a web site that helps keep track of that kind of stuff.
I wanted to share it with other families in case this happened to them. It’s called e-pact, http://www.e-pact.net and we use it to keep track of all our stuff now. Just hope this is a helpful tip.
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