Could You Be Saving Money On Homeowners Insurance?

Insurance can be a frustrating expense as part of homeownership. You may often feel like you’re continually paying for a service, without necessarily reaping the benefits of it. Hopefully, you’ll never have to make a homeowners insurance claim; that being said, you still want the most coverage possible for the lowest payment. The more you can save on your insurance payments, the more you’ll have available for day-to-day expenses. If you need to cut down on your insurance payments, here are a few tactics you can try that might be able to save you money on your next bill.

Know The Numbers

Having a strong understanding of how much you should realistically be paying for your insurance coverage can help you avoid falling into traps that will have you spending more than you’d like to. The cost of your insurance will vary by the property and the level of protection you wish to purchase, but it typically costs around 0.5% of the home’s purchase price. Be sure to crunch the numbers when you first receive a quote; if it seems too high based on the 0.5% estimate, you’ll want to shop elsewhere.

Consider Your Home’s Construction

Not all homes are built the same way, and the type of home you live in could mean you’re paying less or more than your neighbors. New construction homes are everywhere; with a market share of around 10%, the United States is the second largest construction market worldwide and continues to grow. New construction homes are less likely to have existing damage, meaning you’re more likely to get a better deal on these homes. However, an old home can still have a decent rate with the right repairs.

Better Savings With Bundles

If you’re in need of homeowners insurance as well as other types of coverage, you may be in luck. Generally speaking, insurance agencies are more willing to give you discounts when you bundle multiple types of insurance together under one or more of their plan options. Besides, you’ll be able to save on other necessary protections, like your car insurance. In 2017, the total cost of service and parts sales at dealerships in the United States was greater than $114 billion. Having bundled homeowners and car insurance could help you cut down on how much you have to pay for some of these repairs.

Avoid Clever Sales Tactics

Lastly, be smart when you’re shopping for your homeowners insurance. Plenty of insurance companies employ sneaky sales tactics to get you to purchase more with them, including enticing but meaningless labels. For example, be careful with any company that makes claims about new options with labels like “unique” or “patent-pending.” These might not mean as much as you think; a new patent has a term of around 20 years from the application filing date. Shop smart and be on the lookout for sales terms that are designed to draw customers in, and you’ll avoid falling into temporary deals that will cost you more in the long run.

Finding the best possible homeowners insurance is a struggle for many families; you want the best possible coverage for the lowest price, and those plans can be hard to find. Insurance companies often make it deliberately difficult to find these plans, as they stand to benefit from you paying more. However, shopping smart and using these tips can help you avoid getting ripped-off on insurance payments, instead giving you the coverage you need to keep your family safe.