Home Insurance Articles
Tips For Covering Your Home Insurance Costs While You Are Between Jobs
2010-04-01
When you are between jobs or out of work, it can be difficult to pay for gas and put food on the table. Home insurance, which is required by your mortgage company, may be one area where you can trim expenses. The first step is to shop around. Home insurance companies routinely raise rates every year; they depend on customer inertia and a lack of aggressive shopping to retain business. Use brokers and online comparison sites to find the best deals in home insurance coverage. Be sure to request quotes for the same coverage that you currently have in order to compare home insurance costs fairly.
Next, trim away what you don't need. For instance, it isn't necessary to insure the contents of your home with the same company. You may find better rates if you place your contents and building coverage with separate home insurance companies. Make sure you are not over-insured. Call local builders and ask them for new home construction costs per square foot in your area. Multiply that rate times your square footage and that is the amount your home should be insured for. Look at your deductible and decide if you can raise it; higher deductibles may save up to 20% in home insurance rates.
Aggressively seek discounts. Many insurance companies offer discounts that the average buyer is unaware of. If you have been with the same home insurance company for several years, inquire if the company offers a loyalty discount. It isn't necessary to accept the "unlimited value" coverage on your household contents. If you re willing to inventory your belongings and throw in a cushion for overage, you might get a lower rate on your household contents. Some home insurance companies offer no-claims discounts of up to 30% to customers who have not had a claim in 5 to 10 years. Others offer discounts to new customers and customers with excellent credit ratings. Consider placing all your auto insurance with your home insurance company as well, for a multi-policy discount of up to 10%.
Improve home security and safety features. Many home insurance companies offer a guide to home security improvements and will offer a discount to customers who complete all the suggested improvements. By upgrading locks, buying security lights, a burglar alarm, and fitting smoke alarms and fire extinguishers, you are effectively making your home a lower risk for the home insurance company, and your efforts may be rewarded with cheaper insurance. If you have recently made home improvements to the roof, plumbing or electrical systems, you may qualify for more discounts; inquire with your broker. Any or all of these discounts may apply to you, effectively lowering your cost.