The idea behind homeowners insurance is to support policyholders financially in the event the unexpected occurs. Be it a fire or a flood, vandalism or theft, the right kind of policy will always bring a little sunshine into that rainy day. The catch, of course, is that you have to make an often hefty upfront payment.
If you’re strapped for cash, go ahead and secure yourself a payday loan on Payday Depot and then make sure to follow our tips on lowering the cost of your policy.
Invest in Home Security
This might seem like just another money sink, but spending a fraction of your funds on safety features can actually save you money. Something as simple as an alarm system or a smoke detector will often earn you a discount when it comes to insuring your home.
Avoid Small Claims
Insurance companies don’t hesitate when it comes to penalizing high-risk customers (i.e., those who flood them with phony and/or insignificant claims). They can start by raising your premium and end by altogether canceling your policy, leaving your home uninsured. The rule of thumb is—if you can afford the damage, consider paying for it out of pocket without filing a claim.
Ask About Discounts
Let’s face it, your insurance provider might not be so upfront about some of the lesser-known discounts unless you ask them first. You might be eligible for additional discounts if:
- You plan on paying your premium automatically via bank transfer
- No smokers live in the property being insured
- The property was only recently purchased
- You opt for paperless billing
- You work in a field considered favorable (low-risk)
Get a Package Deal
Buying, for instance, your home and auto insurance from the same provider can end up lowering the costs of both. Ask your insurance provider about the other types of policies they offer—it might be that you need them for more than just your home.
Rid Your Home of High-Risk Items
Trampolines are fun, yes, but to insurance agents, they are accidents waiting to happen. Sell it, and watch your premiums fall. Buying a home with a swimming pool or lots of intricate playground equipment can likewise cause your homeowners insurance premium to skyrocket. If you’re looking to save money, avoid such high-risk items at all costs.
Exercise Due Diligence
Don’t expect to get the best deal from the first insurance provider you talk to. If you look around, you’ll find that different insurers often offer varying rates for the same coverage.
The common recommendation is to contact at least three insurance providers for their quotes before making a decision. It’s also a good idea to repeat this process every few years to make sure that you’re always taking the best possible option.
Pay in Full Upfront
Monthly insurance payments often come with extra fees. To forego these expenses, try paying your dues in full as soon as the billing cycle begins.
Be Loyal to Your Insurance Provider
Insurance companies love loyal customers. They love them so much that they shower them with financial rewards. Stick with the same insurance provider for several years and watch these bonuses pile up. This doesn’t mean, of course, that you should stop keeping an eye out for better deals elsewhere.