House on Fire! Easy Tips to Save You Money on Home Insurance

by | May 14, 2012 | Personal Finance

House Fire Home Insurance TipsEarthquakes, windstorms, rain damage, flooding, falling trees, vandalism, burglary… there are many things which could possibly happen to cause damage to your home.

This is why homeowner’s insurance is important, so that you can be protected in these unfortunate events.

However, home insurance doesn’t have to be as expensive as you might think.

There are a few ways that you can reduce the cost of this insurance and protect your home for less.

Take the Time to Shop Around

You don’t need to sign up for the first home insurance that you come across, as you will likely be able to find a better offer if you take a while to compare prices and packages.

You can also ask your friends and coworkers for recommendations, as well as looking at consumer guides and online quote comparison websites.

Reduce Safety Risks

There are certain measures that you can take to reduce the risk of theft and fire in your home which may lower your insurance premium.

For example, you can install a burglar alarm and modern locks, plant prickly bushes under your windows, put your lights on a self-timer, and join the Neighborhood Watch and much more.

You can also reduce your fire premiums by maintaining your smoke alarms and having your home inspected by a fire safety officer.

If you are in an area prone to earthquakes, you can make your home safer by reinforcing your roof and adding stronger materials to the structure.

Include the Value of the House, Not the Land

When you are deciding how much homeowners insurance to buy, you don’t need to include the land underneath your house.

That land is not at risk for theft, fire, rain and wind damage like your house will be, so the value of it doesn’t need to be included in your insurance policy and you will end up paying a higher premium if it is.

Instead, just pay according to the amount it would cost to rebuild your house on the land.

Ask for Other Discounts

Did you know that there are several types of discounts that you might be able to negotiate on your home insurance?

For example, if you are retired you are more likely to be at home and will spot a fire quicker and will be less likely to get burglarized.

You will also have more time to maintain your home.

Some companies will give up to 10% discount for policy holders who are older than 55 and retired.  Be sure to ask your insurance representative about any discounts that you might qualify for.

Another popular discount is offered if you have multiple lines of insurance with the same provider.  For instance, if you insure your home and your automobiles with the same insurer, then you very likely qualify for a significant discount.

These are just a few ways that you can save money on your home insurance so that your house is protected no matter what happens.