Homeowners insurance offers protection for damage or loss caused by unexpected events such as storms, fires, and theft. When you have a mortgage, your lender wants to make sure your property is protected. That’s why lenders generally require proof that you have homeowners’ insurance.
Besides the fact that homeowners’ insurance offers protection for damage or loss caused by events such as storms, fires and theft, it also protects your lender if you default on your mortgage payments. Below are five ways to save money on homeowners insurance.
Maintain a Good Credit Score
Its important to maintain a good credit score. Insurance companies check your credit score in order to gauge the risk they’ll take to insure you. If you have a low credit score, you’ll often pay a higher premium than if you had a high credit score.
Bundle Insurance Policies
Bundling your insurance usually saves you money. Companies that offer bundling tend to give a 5-25% discount on each policy. For example, if your Home and auto insurance is bundled, you might receive discounts on both your auto policy and homeowners’ insurance.
Raise Your Deductible
Raising your deductible on your homeowner’s insurance is the most effective way to lower your monthly premiums. But, if you have a claim, you would have to pay that deductible before the insurance company will pay you. That means you need to still be able to afford that deductible.
Account for Home Improvements
Although you can’t deduct home improvements, it is possible to depreciate them. This means that you deduct the cost over several years- anywhere from three to 27.5years. To qualify to depreciate home improvement costs, you must use a portion of your home other than as a personal residence.
Always shop around for your homeowner’s insurance. The best way is to speak with a licensed Insurance agent. Raising your deductible always lowers your insurance cost. Don’t confuse what you paid for your home with any rebuilding costs. Bundle your home and auto insurance with the same insurance carrier. Improve your home security. Seek out other discounts.