How to Create an Economical Homeowners Insurance Policy

Insurance of any kind is not an off the rack purchase. One size policy does not fit all and to get the full value of your policy without paying out of this world prices, the customer must consider some cost savings measure, but without compromising quality and integrity of the policy.

Homeowners insurance is not necessary except when paying on a mortgage. It is wise to have homeowners insurance to protect the investment you made in your home no matter if a mortgage is in place or not. There are a few things to consider when choosing homeowners insurance that will save you money in the long run.

When looking for homeowners insurance, ask family and friends for recommendations. A word from the consumer is the best way to find something that is reliable and economical. The National Insurance Commissioners has information on insurance companies as well as insurance agents in your state, and the Insurance Commissioner in your state. Your state commissioner will also have rates set by the major insurers, as well as complaints lodged against each company. Consumer guides will often give an idea of insurance price ranges you will find for homeowners insurance and which companies have the lowest rates. When choosing homeowners insurance, do not choose on price alone. You are looking for a competitive price that will offer competitive coverage.

Consider raising the deductible you will pay in the event you file a claim. A deductible is the out of pocket expense the homeowner will be required to pay before the benefits of the homeowners insurance policy kick in. The higher the deductible you accept will mean lower premiums. Most insurance policies come with a standard $500 deductible but if you can afford to handle a $1,000 your savings may be as much as 25% on your premiums. Keep in mind if you live in an area prone to disaster, your insurance policy may have a separate deductible for certain types of damage.

Consider buying all your insurance policies, including vehicle, motorcycle or boat insurance as well as your homeowners insurance from the same insurance company. That will qualify you for an insurance multi item discount that will result in generous savings for you.

When buying insurance for your home, remember you are insuring your home and not the land beneath it. Look at the cost of the home and what the rebuilding cost will be in the event of damage or complete destruction of your home.

Insurance companies will offer discounts on insurance if your home is outfitted with smoke detectors, dead bolt locks and burglar alarms. Some insurance companies will cut your premium by as much as 15 to 20% if you install a sprinkler system as well as a fire and burglar alarm that is hardwired to the appropriate public safety office. Before you buy such a system check out the ones that will qualify for a discount and compare the cost of installation to the savings the installation will bring.

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