Say Goodbye To High Monthly Premiums For Your Homeowners Insurance

While maintaining quality homeowners insurance coverage is a vital part of being a responsible homeowner, finding a way to balance this need and your budget at the same time can be difficult. This is especially true for homeowners who require add-on coverage options such as additional flood insurance or hurricane coverage. Thankfully, no matter how much coverage you need, it is possible to start saving money on your monthly premiums using the moving saving tips outlined below. 

Higher Deductibles Don't Always Mean Larger Out-Of-Pocket Costs

While it is true that a higher deductible will increase how much you have to pay out-of-pocket when filing an insurance claim, this does not necessarily mean that you are paying more overall. This is because the higher you set your deductible, the less you will pay each month for your homeowners insurance coverage. Since you will not be filing a claim with your insurance company every month, most months you will enjoy a substantial savings which can be used to offset the possibility that you will need to pay a higher deductible in the future.

For example, imagine that you pay $150 each month for homeowners insurance. For the purpose of this example, increasing your deductible from $500 to $1,000 allows you to save $50 each month on your premium. Over the course of the year you will save $600. Even if you had to file a claim with your insurance company every year, you would still be saving $100 each year by choosing the policy with a higher deductible.

Customer Loyalty Is Key To Many Discounts

Like most businesses, an insurance company counts on return customers in order to keep them in business and keep them profitable. It is especially important for them to retain the business of customers with minimal claims history. In order to help them accomplish this goal, most insurance companies will offer a variety of discounts that are aimed at rewarding customers for their loyalty. For example, insurance companies will often offer a percentage off your policy once you have remained a customer for a certain amount of time.

You may also be eligible for loyalty discounts if you purchase more than one policy through the same company. This type of multi-policy discount is often available even if you are a new customer as long as you purchase two or more policies at the same time. For instance, you may choose to purchase both your homeowners and auto insurance policies through the same company.

 For more information about homeowner's insurance, contact a local insurance provider.