Stop Wasting Money On Excess Homeowner's Insurance
Home insurance may seem like a necessary evil, but not only does it
protect homeowners from suffering major losses, it also costs much less
than people think. The truth is that many people are overpaying for
their home insurance. Sometimes people over-insure or fail to update
their policy when situations change. A thorough review of insurance
policies along with employing a few money-saving tactics can save
hundreds of dollars per year.
How to Save Money By Raising Deductibles
Increasing deductibles is a guaranteed way to reduce monthly payments,
explains a Money Talks News post published on MSN.com. Policy holders
can save upwards of 10 to 30 percent by raising their deductible from
$250 to $1,000. Money saved can then be put into an emergency fund to
cover the deductible in the event something happens to the home or be
used for other emergencies.
It is also a good idea to review any policy extras as they may no longer
be needed. The value of items in the home may also change. There is no
point paying extra to insure things like jewelry that are no longer on
Why People Do Not Need to Insure Their Lots
Many people insure their homes for the price they paid for the property.
This is often unnecessary. If someone pays $500,000 for their house they
do not need a policy to cover $500,000. Part of that money went to pay
for the land. The actual value of the house is going to be less than the
and the lot itself is not going to be stolen, robbed or burned up in a
Protecting home value against housing busts
Why It Pays to Shop Around
People can obtain direct insurance
quotes quickly and from multiple companies online. Policy prices do vary
and shopping around for the best price can save a bundle in the long
Also, shopping around may uncover discounts that a person's direct
insurance company is not offering. Many insurance companies offer
discounts to people who have multiple policies or who qualify for
discounts based on factors such as age or martial status.
How Safety Features Can Save Money
Some insurance companies give discounts to homeowners who install safety
features or disaster proofing. Generally, homeowners can save a minimum
of 5 percent simply by putting in a security alarm, fire extinguisher or
dead bolt locks. More advanced security systems better protect homes and
may save owners up to 20 percent off their premiums.
Other potential money savers include storm shutters, stronger roofs and
other weather-resistant features.
Things to Remember When Dealing With Tenants
Tenants sometimes mistakenly assume that they are covered by their
landlord's insurance. This misconception can put landlords at risk. If a
tenant does not get their own insurance and then causes damages that
affect nearby properties their landlord could be on the hook to pay for
major repairs out of pocket.
What to Consider About Home Insurance and Business
According to MSN.com,
home insurance usually covers only $2,500 for business-related property.
Policies typically exclude business activities and something as common
as children holding a car wash or setting up a lemonade stand can get
parents in trouble if the kids business activities cause damage.
Companies have different rules for household members and minors engaged
in business activities on the property. Switching to a company that
covers these activities may save money in the future.
Although no one can avoid home insurance altogether, everyone can save
money by insuring only what they need. Changing policies as life
situations change also ensures that people never overpay.