3 Ways to Save More Money OnHome Insurance

Home insurance is a necessary form of coverage that ensures consumers’backs are covered should anything happen to their property. Yet,

sometimes, our policies become outdated and do not reflect our currentneeds, often resulting in extravagant and inflated payments that take an

unnecessary toll on your wallet. The following list of tips will minimizeyour payments and maximize your coverage to ensure your plan is the

plan you need, and not the plan your insurance company wants.

Raise the Deductible

While $500 may be the insurance norm for adeductible on home insurance, the fact is that

if you double it to a $1,000, you can actuallyreduce your premium by a full 8-10%. Of

course, you should keep in mind that if youincrease your deductible, you will have to paymore in the event of a claim. Yet, should you

not have to file, the numbers support that youwill experience considerable savings. For

instance, according to ValuePenguin.com, theaverage premium this year is $952. If you were

to save ten percent of that by opting for ahigher deductible, then within just five to sixyears you will make back that extra $500 you

may or may not need to spend on filing a claim.

Install a Home SecuritySystem

In the past, it used to be that if homeowners were willing to installa smoke detector and a deadbolt, they could see savings on their

coverage. However, now, these items are so commonplace they areexpected within a home. Still, the same idea applies today, though.

By mitigating risk through installing a sophisticated,comprehensive, advanced security system, consumers can see a

discount ranging from 2 to even 10 percent depending on theirinsurance carrier. Just as well, it is noteworthy that these more

advanced security systems should have the ability toautomatically alert the police or fire department in the event of an

emergency.

As mentioned previously, the largest issuefacing overpriced policies today is the fact

that they are outdated. Not all of theinformation has been made available to

the company, or directly told to thecompany, and because of such, they have

neglected to update your plan.Considering insurance plans are based onthe value of your house, it is of the utmostsignificance that the insurance company

has an updated plan reflecting not the pastvalue of your home, but the current value.

For instance, say you added a $50,000home improvement, but never informed

your insurance company. Then, a firebegins in the kitchen, spreads, and

destroys your property. So, you file aclaim; but, your plan is only indicative ofyour house’s value before the fire. Thus,you are only reimbursed for that formervalue, leaving you to make up $50,000 onyour own. It pays, literally, to keep your

insurance company in the know about thevalue of your home as you add to it.

Any Questions?

Although insurance may not be the mostglamorous of subjects, it is one of the mostimportant. It holds an extraordinary ability to

either help us or hurt us based on somethingas seemingly simple as updated information. It isimportant to remember that in the realm ofpersonal finance, insurance plays a role of

incredible significance.