3 Ways To Reduce Your Home Insurance Premiums

Want to have home insurance but don't want to pay top dollar for it? You're likely looking for ways that you can lower that annual premium you pay to protect your home. Here are a few ways that you can do it and still have home coverage that works for you. 

Increase Your Deductible 

The main reason to have home insurance is to cover a big loss in the event that your home is destroyed. These are incidents like house fires, where your home can quickly and suddenly be destroyed due to no fault of your own. That is why it is worth increasing your deductible so that it is much higher, but will reduce the amount you pay for home insurance.

Having a high deductible though brings up two issues. The first is that you need to have the cash to pay the deductible if you need to use it. If your home insurance deductible is 1% of the home's value and you own a $400,000 home, then you would be paying $4,000 to use your insurance. If you do not have that much money in your rainy-day fund, you will struggle to use your insurance when you need it.

Get Rid Of Unnecessary Insurance Coverage

You may be surprised that the insurance policy that you are quoted provides coverage for things that you do not even own. For example, a standard personal property policy may have coverage for high-value items, such as jewelry, that you do not even have. You could be paying for coverage on these items unnecessarily. Ask about what type of coverage you can get rid of because you are not taking advantage of it. 

Avoid Overinsuring Your Home

Many home insurance policies are designed to cover your entire home and then add an additional percentage to your home's value as an additional safety net. That additional coverage may not be necessary and you are paying extra for it. For example, if your home's value has skyrocketed recently, you may make the mistake of buying enough coverage to match the potential price that it is worth. However, you need to be concerned about the construction costs to rebuild your home, not buy it in its current state. You will likely find that it is unnecessary to overinsure your home by tacking on an unnecessary additional percentage, and all it does is give you some peace of mind and costs more money. 

To learn more, contact an insurance agency.