Cheap Homeowners Insurance

How to get the best deal possible

Chances are you are paying too much for your homeowners insurance. If you've lived in your home for a while chances are you haven't changed companies or even considered another company either. One major study showed the average family saved $327 discount on their annual premium, just by shopping around for a cheap homeowners insurance quote. Imagine saving $327 year in and year out?

-$327 per year savings

-Assuming Over 20 years at an average of 8% interest in a retirement account

-You will have $16,157 more at retirement after 20 years

The most efficient way to price out other cheap homeowners insurance quotes is to use a company that will gather all the cheap homeowners insurance quotes for you. Here is an example of just one company that will do your comparison shopping for you. You'll get at least 4 quotes from major insurers. For added piece of mind, take a few minutes to research on the web the cheap homeowners insurance company you are considering.

I found a better rate for cheap homeowners insurance, am I perfect yet?

Not quite, there are still other things you can probably change about your cheap homeowners insurance to save more money.

Most people, when I ask them what their cheap homeowners insurance deductible is, usually say between $250-$500. Are you calling your homeowners insurance company everytime you have a $700 claim? Are you filing a claim every year or two? If not, then you should consider raising your deductible. Consider this:

• Raise your deductible from $250 to $500, get an average premium decrease of 10%
• Raise your deductible from $250 to $1,000, get an average premium decrease of 25%
• Raise your deductible from $250 to $2,500, get an average premium decrease of 33%

• Raise your deductible from $250 to $5,000, get an average premium decrease of 38%

As you can see from above, raising your deductible on your cheap homeowners insurance quote can save you a lot over time. Now, I'm not saying to change your deductible to $5,000. Consider going up to the $1,000 deductible. At a cost savings of 25% on your cheap homeowners insurance premium that should add an additional $200 or so a year in savings (Remember how much that adds up to over time).

With a $1,000 deductible, you will pay additional money if you have a claim. However, with all the money you would have saved over time by going with a higher deductible, this more than offsets the extra deductible payout (Assuming you have less than 1 claim every 4 years).

Final thought on how to save on your cheap homeowners insurance premium

You are paying to insure your home, correct? Chances are you using your home value to determine how much coverage to get on your cheap homeowners insurance. However, your home value also accounts for the value of the land. You don't necessarily need to insure your land (especially if you are on a large property). Let's say you have a home value of $300,000 but your lot value is $80,000 of that. So you actually have a house value of $220,000. Therefore you need $220,000 in coverage for that part of your insurance. Maybe add on what you may need for re-landscaping in case of a horrible fire. The only scenarios I can come up with where one would lose their actual lot would be a mudslide or a hurricane. So, if you don't live in a place where there are mudslides or hurricanes you may want to re-evaluate exactly how much coverage you need.

Please take the time to accurately judge how much insurance you need to replace the things in your house. Remember to revisit how much coverage you need to replace your things as you get older and have more things that would need to be replaced.

I hope these were helpful tips. Please comment on the bottom of the page with any success stories you had with shopping for cheap homeowners insurance.

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