Market Overview

Ways To Reduce Home Insurance Costs


Ways to Reduce Home Insurance Costs

In the lives of most Americans, buying a new home means that you will be making the biggest (and maybe the most important) purchase of your life.  There are many factors that go into selecting your new home but one area that is often overlooked is the insurance that will be required in order for you to become a truly protected homeowner.  Since this is a regular (and long term) cost, it makes sense to do everything you can to limit the amount of money you will be paying during each period.  Here are a few tips to reduce your home insurance costs and keep your budget healthy.  

Use the Same Company for Home and Auto Insurance

“One way to cut down on your home insurance costs is to buy your policy from the same company that covers your automobile,” said Jim Holm, industry analyst at Enhanced Insurance.  “Many companies will offer special deals or loyalty incentive programs as a way to gain your business and keep you are a customer for the long term.”  This also helps with payment, as all of your bills will be coming from the same place.  For these reasons, it makes sense to bundle your plans as much as possible and to take advantage of the added benefits that are seen when using the same company for both auto and home insurance.  

Improve Home Security and Disaster Resistance

Another way to reduce your home insurance premium is to increase the protection of your home.  This can be done on multiple fronts, as there are always concerns with respect to theft security and disaster resistance.  Simple activities like having a home alarm system and fire-proofing your residence can go far in cutting your long term costs as it will mean that your insurance company will feel as though there is less risk in covering your residence.  Short term, these types of activities will cost extra money but when we look at the longer term reductions in your insurance premium, these activities tend to pay for themselves -- and help protect your home at the same time.

Shop Around

It is also a good idea to explore all of your available options.  This means that you should never simply take the first insurance offer that is provided for you.  Even if the deal seems great (and maybe it is), there is a good chance that another company will be willing to beat that offer in order to gain your business.  There are many insurance companies that are available to you, so there is a good deal of competition that is seen in the business.  One of the best ways to attract new customers is to simply lower the price, so it is a good idea to let your insurance representative know that you are comparing different policies at different companies.  Ideally, the representative will “cut to the chase” and give you the lowest rate available in order to avoid losing your attention.  

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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