Insurance is a necessity rather than a luxury. However, rising real estate property values, repair and renovation costs and greater losses incurred during natural catastrophes have increased homeowners’ insurance premiums significantly over the last few years.
Listed below are some tips that can be useful in reducing insurance costs.
1. Increasing deductibles: Insurance premiums can be reduced by increasing insurance deductibles. If the insurance deductible is low, the insurance company has to pay a higher amount in case of any loss or accident. As a result, the premium also tends to be higher.
2. Multiple insurance policies: In case of having different insurance policies with multiple insurance providers, one can negotiate a deal with a single insurance provider regarding transfer of all accounts at a discounted price. Insurance companies often encourage customers having more than one policy with them.
3. Installation of safety features: Insurance companies offer discounts and credits for features such as fire extinguishers, sprinkler systems and burglar alarms that provide additional security to the property. This is one good way of reducing insurance costs.
4. Home renovation: One can reduce the cost of insurance by making certain adjustments in the property that include adding storm shutters, dead-bolt locks, and modernizing home’s plumbing, heating and electrical systems. These aspects reduce the overall risk to the property.
5. Insurance score: Insurance scores of the applicant have a significant effect on the overall cost of insurance. It is better to improve insurance scores before filing an application for any insurance policy. Premiums tend to be lower for customers with better insurance scores.