According to the latest data from the Insurance Information Institute, the average homeowner pays nearly $1,100 a year for home insurance. This is money well spent to be sure, but that’s not to say it would be in your best interest if you could trim these costs.
As the months and years pass, the average price of just about everything increases, this holds true with insurance premiums. Just like any other service or good, your home insurance increases over time. The reason for this is as your home and property values go up, the cost to fix or replace it increases as well. Your insurance company must raise premiums as the cost to replace and repair your home go up.
But by modifying your homeowners policy and investing in some upgrades, you can keep your insurance premium under control. Natural State Insurance Group, your insurance company in Little Rock, offer tips on ways you can keep your homeowners insurance premium low.
If you are using one insurance company for your homeowners insurance and a different company for your auto insurance, consider picking one company and bundling your policies.
Many insurance companies will give you a nice discount when you bundle two or more policies with them. Call your insurance agent for details.
Eliminate Coverage You Don’t Need
Take some time and evaluate your insurance policy to see if there is any coverage that you no longer need. Just be careful not to cut your coverage so low that if your home sustains damage you fall short. Paying out of pocket to rebuild a home to cover what you cut can be very expensive.
It’s always a good idea to keep an updated list of your home inventory. In case something does happen to your home, you will want an updated list of what needs to be replaced.
Reduce the Risk of Flooding
The number one insurance claim in America is, you guessed it, damage caused by flooding. If your home is in an area at high risk for a flood, there are ways in which you can save money on your insurance premium.
Just call your insurance agent for details.
If you live in a low-risk area, consider adding flood insurance as it could save you thousands of dollars down the road.
Remove Structures You No Longer Use
You might have buildings on your property that are old and not being used, consider tearing them down or having them removed. It might be that you are paying for them on your insurance policy.
Boost Your Deductible
By increasing your deductible, you will notice an immediate impact on your insurance premium. A higher deductible will result in a lower premium because your out of pocket expenses will go up if a claim is made.
But make sure you be realistic about the amount of your deductible. You don’t want to find yourself in a financial conundrum and unable to afford a much-needed repair because you set your deductible too high.
Protect Your Home from Theft
While it is impossible to prevent a natural disaster, you can protect yourself from theft. Fight back to reduce your chances of being robbed by having anti-theft measures installed including deadbolts, motion lights and security systems.
Taking these steps just might save you some money on your insurance premium. It also gives you peace of mind knowing you and your family are in a safer environment.
If you have questions concerning your homeowners insurance policy, we are more than glad to help. Maybe we can help you save some money on your homeowners premium. Give Natural State Insurance Group a call today.