Keep Home Insurance Costs Down
I don't recommend saving money by skimpy on having homeowner's insurance, but there are ways to keep the monthly premium costs down while still making sure your home is protected.
1. Be choosy in the first place
This particular tip is only suitable for folks in the market for a new home. When you are looking at properties, keep insurance in mind. Ask the questions that an insurance company is going to ask, like how close is the nearest fire station or how old is the furnace? Don't make any assumptions either. Houses that seem very similar may have very different insurance issues. Take the extra step before making an offer and get an actual quote.
2. Don't smoke
This just makes good sense no matter why you're doing it. But having a smoker in the house can impact your insurance fees. Really, if you're trying to be frugal, you should already be considering quitting for the cost savings.
3. Get an alarm system
Think about having a monitored alarm system installed. But before you take that step, get in touch with your insurance company and find out exactly what your savings are going to be. If it costs more to have the system in place, this might not be the most frugal choice.
4. Buy in bulk
Yes, this frugal tip applies to insurance too. Most companies will give you discounts if you have more than one policy with them. A typical discount is around 10% off if you have both your homeowners insurance and automobile insurance together.
5. Increase your deductible
By upping the amount you will pay when you make an insurance claim, the overall premiums will go down. Since you don't go around making claims every month, the extra cost isn't going to impact your regular monthly budget. With what you save each month, you can easily set aside a little cushion fund to help with the larger deductible, should you need to make a claim.
6. Don't claim unless you have to
Now I don't mean you should shoulder the costs of things that were intended to be covered by insurance. That's the whole point of having insurance. But in situations where the damage is minimal, you may want to think twice about submitting a claim. It may cost you more in the long run, when your premiums increase.
All of these tips and ideas are just suggestions, and you should always check with your insurance company before making any assumptions about policies and discounts.