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Homeownership provides many benefits ranging from security and protection to a financial investment that may significantly grow in worth. Your home may also be used as an alternative credit source once you have built up enough equity. Despite the multiple advantages of owning a home, however, it can also be a source of stress and financial pain when things break or when accidents occur.
Fortunately, home insurance can help in these instances by reimbursing you for major expenses resulting from weather conditions or other emergencies. If you have a flood or a fire, home insurance will pay to get your home back in living condition. It can also help pay for a new roof, siding or significant structural changes required to keep your home safe.
While home insurance is mandated by many mortgage lenders it doesn’t mean you have to pay top dollar. In fact, there are multiple ways homeowners can cut their home insurance costs without having to sacrifice the quality of coverage. We will explore three smart ways to cut home insurance in this article.
If you’re in the market for a new home and need to get home insurance or if you’re simply a homeowner looking for a cheaper policy it helps to shop around.
3 ways to cut home insurance costs
Here are three reliable ways to cut home insurance costs:
Shop around
As mentioned earlier, if you’re looking to pay less for home insurance then spend the time shopping around for providers. Get quotes from at least three providers in order to establish a baseline to measure against. Just make sure you’re getting equal quotes (so the amount of coverage and the policy types you’re quoting should be identical). From there go back to your current home insurance provider and see if they can meet or beat the quotes you’re getting elsewhere on the market. This will take time, patience and some research but you may wind up reaping the benefits with a substantially cheaper policy.
Use the table below to compare your local home insurance options now.
Look for discounts
If you’re happy with your current home insurance provider and just want to cut costs then explore all of your options. There’s a good chance that you’re eligible for a discount that you’re not taking advantage of. For example, many home insurance providers will offer you a lower rate if you’re willing to bundle (combine) your home insurance and car insurance policies under their umbrella. You may also be able to get a loyalty discount (if you’ve been using your current home insurance provider for an extended period of time), a safety discount (if you install insurance-approved fire detectors throughout your home) and more. Your occupation and status as an active or retired member of the military may also help secure discounts, depending on the provider.
Maintain your roof
The roof of your home protects everything underneath it. A roof that’s in poor condition, then, could lead to significant internal damage that would result in multiple home insurance claims. Because of this, the age and general shape of your roof may be taken into consideration by home insurance providers when trying to determine how much you should pay. A roof that’s in better condition is more likely to endure poor weather and other conditions. Because of this, you’ll likely pay less for home insurance than you would have if you left your roof in poor shape.
The bottom line
Home insurance offers crucial protection for one of your biggest financial investments. You don’t want to underinsure yourself and put yourself in a poor position should accidents occur. However, you also don’t want to pay more for home insurance than you should. So be sure to shop around for providers to compare against to see if there’s a better, cheaper alternative. And be sure to research all of your potential discounts (there may be more than you initially thought). Finally, maintain your roof and keep it in as good a condition as possible. A roof that’s in poor shape can lead to many issues inside your home (and higher costs when it comes to paying for home insurance).