Saving on Home Insurance: Part Two

Your Deductible Matters

The amount of your home insurance deductible can greatly affect how much you pay each month. A simple change from a $500 deductible to $1,000 may save you anywhere from 25 to 50 percent. Of course you will have to pay this out of your pocket if you make a claim, but until that time you are going to save money.

Your Rebuilding Cost

Many people are not aware of the fact that there are differences between the cost of rebuilding or replacing and the actual cost of the home. You can save money on home insurance by only insuring the value of the home and leaving the land out.

Coverage for Possessions: Too High

Each year you should take inventory of the items in your home that need to be covered by your home insurance policy. Many homeowners find that they have overinsured their items, and in turn are paying more money than they should.

Safety Features

The more safety features you have in your home the lower your monthly home insurance premium will be. If your home is protected by smoke detectors, burglar alarms, and dead bolt locks you will be able to save money. Keep this in mind when you are buying a home or redecorating. And remember, your home insurance company will not know about these things unless you tell them.

Quit Smoking

Home insurance companies gives discounts to homeowners who do not smoke. Each year thousands of residential fires are started by careless smokers. If you do not smoke, you are not a risk in this regard.

Avoid Smaller Claims

Small claims can make your home insurance premium increase. So before you make that small claim, it may be a good idea to simply fix the problem on your own. This can save you a lot of money in the long run even though you have to pay a bit of your own money up front.