3 Secret Ways to Save Money on Mandatory Insurance Every Month
For homeowners, dealing with home insurance monthly bills can be a little stressful, as it always seems to increase. There are several ways though to stop burning holes into your pockets. With some planning and efforts, you can save money on mandatory insurance every month. In this post, our experts will share some tips on how you can achieve this goal.
- Talk to your agent
Most of the time, all you have to do is ask. Talk to your agent about your options and how you can lower our premiums without losing any of the benefits. They should be able to figure out some simple ways to do this. For example, installing smoke detectors, fire extinguishers and an efficient home security system can help reduce your homeowner’s insurance rates. Have a brainstorming session with your agent and get some advice on other details you need to work on. They may advise you to get rid of other fixtures like maybe swimming pool or a trampoline in your backyard.
They may also discuss some of the “hidden savings”. Be familiar with the policy and coverage you have. Analyze the market value of your property. Are you over-insured? For instance, if you bought your property at $400,000, you may have declared to your agent that it is worth $400—but that includes the value of your house and the lot as well. So, when a tornado destroys your home, your insurance is going to replace the house and you just hope that your land is still there.
To simply put it, you should only be insuring the reconstruction costs. Keep in mind that the land is probably worth 10-15% of the total purchase price. So for a property with a fair market value of $400,000, you may want to ask that you’re covered for a house worth $370,000or even $300,000. This shall make a big difference on your insurance monthly rate.
- Dig deeper to multi policy discounts
Be familiar with their multi policy discounts. Several insurance providers offer a 15% discount for insuring both home and auto insurance with the same company. Some companies can also provide 5% off home and auto polices if you have a life insurance with them. You may also want to check out the affinity discounts for certain occupation and educational achievements. Many insurance providers offer up to 15% off home insurance for certain jobs like teachers, firefighters, policemen, engineers, scientists, realtors, doctors, and many more.
- Decide to pay in full discount
Paying in full discount can totally reduce your monthly insurance payments. Most providers may charge you a nominal fee for paying your insurance premiums in a monthly basis. Ask your insurance company if they have electronic bank payment method. This may help eliminate these monthly fees. Some insurance providers do not charge a monthly fee as long as you pay by electronic bank transfer. Just make sure they have this option.
Other things to keep in kind
It is always better to keep in touch with your homeowner’s insurance provider anytime you make modifications to your home. This is to make sure you can update your insurance plan and coverage. They should review your property to make you are getting what you paid for. In addition, you should find out what it will cost you to replace your house. Your agent should have tools that can help you determine these numbers and figures. They should be able to do the math for you and specify some ways on how you can reduce your insurance monthly payments.
These are just some ways you can do to reduce homeowner’s insurance monthly payment. Consult your financial advisor and your insurance agent for more comm