Along with many other things, you may find your homeowners insurance premium is increasing each year. There are some steps you can take that may help you keep the premiums under control.
You may want to consider raising the amount of your deductible. The deductible is the amount you will be responsible for before the insurance company starts paying on a claim. If you raise your deduction form $50 or $100 to at least $500 to $1,000, you could save up to 25 percent on your premiums. This is especially helpful if you don’t normally file many claims each year.
Some companies may offer discounts of 5 to 15 percent if you purchase both your homeowners insurance and automobile insurance from the same company.
Review your policy to make sure you are not paying for extra coverage you may not need. There may be extra coverage for disasters such as earthquakes if you live in a non-earthquake zone. Also, you may have had coverage for items you no longer have such as expensive jewelry, antiques or other collections. Also, review your policy regularly to make sure you are adequately insured. You may need additional coverage if you make major purchases or improvements to your home.
Ask you agent if there are discounts if you have certain items such as smoke detectors, security or fire alarm systems, deadbolt locks and fire extinguishers. Even if you don’t have these items yet, it may be worth the added expense for the possible discounts you could receive on your annual premiums. Some companies may also offer discounts if you are over 55 or retired.
You may also keep your premiums lower if you keep your home maintained and updated. There is a reduced risk of fires if your wiring and heating systems are updated. It is also important to keep your roof maintained or have it replaced to reduce the risk of leakage that would cause other problems.
Owning a swimming pool or trampoline can raise your insurance costs because of the increased risk of accidents and injuries caused by them.
Your credit score affects more than loan and mortgage interest rates. Many insurance companies also base your premium rates on your credit scores. The better your credit score is, the lower your premium would likely be.
With homeowners insurance premiums continuing to increase, there are some steps you can take to keep them under control.