Keeping monthly expenses low is a priority for many homeowners. From utilities to the cost of homeowner’s insurance, the less you pay, the more money you have for the things you love to do. There are many ways to save money on your premiums without reducing your coverage options; however, you should avoid the common pitfalls many homeowners experience in their quest to save money.
Accepting a Higher Deductible That is Too Expensive
Most articles about reducing the costs of your home insurance suggest you choose an expensive deductible. This is a great strategy if you can afford the deductible, but if not, it sets you up to be under a lot of financial pressure if you ever experience a loss. You should choose a deductible that is higher, yet affordable for the right balance between lower premiums and affordable claims.
Failing to Partner with an Independent Insurance Agent
There are two types of insurance agents that provide insurance for consumers. Captive agents are those agents who work with only one brand of insurance, while independent insurance agents work with many different insurance companies to provide you with competitive rates and an array of products. When you work with an independent agent you get more than an insurance product. You get value, a partnership and peace of mind knowing that the coverage you select will protect your home.
Making Unnecessary Claims
The number of insurance claims you make on your homeowner’s insurance policy affects how much you pay for your insurance. Individuals who constantly bombard their insurance companies with claims may find that they pay significantly more for their insurance. To avoid this problem, minor damage to your property should be fixed without involving your insurance company. Hiring a professional who is appropriately licensed to fix the problem remedies the problem quicker than filing a claim and it may cost you less in the long run.
Homeowner’s insurance exists to protect your property from damage or lawsuits resulting from people injured on your property. To ensure you consistently have this coverage, you should avoid typical pitfalls others make that result in their homeowner’s insurance premiums increasing year after year.