The average homeowner’s insurance cost in the United States is just above $2,300 each year. It seems expensive, but this figure could be dramatically reduced if you use a few handy tips. With homeowner’s insurance, you will have peace of mind and financial security that will make a small monthly payment well worth it.
You do not have to be a homeowner to benefit from these cheap insurance quote tips. These tips can also be used if you are a renter, with many people taking advantage of cheap renter’s insurance using these methods.
Why get homeowner’s or renter’s insurance?
If you are a homeowner, your mortgage company will most likely require you to have homeowner’s insurance. If you are a renter, your landlord may require you to have renter’s insurance.
However, having these types of insurance make sense even if you are not required to take out a policy. Both homeowner’s and renter’s insurance protect your possessions from damage or theft. Homeowner’s insurance also protects your home itself. In the long run, paying a low monthly premium can save you a lot of money and stress in case of an emergency.
Fortunately, you have several coverage options when it comes to homeowner’s or renter’s insurance. You may choose the type of coverage that makes the most financial sense for you. Here are just a few of the types of coverage you will see with renter’s or homeowner’s insurance.
Dwelling coverage is the basic part of homeowner’s insurance. This protects your actual house, including floors, appliances, walls and more. Typically, you will receive enough to rebuild your home if necessary.
Content coverage or personal property coverage protects your possessions
Personal liability covers the cost of injuries that a guest might receive in your home.
You can also opt for special protections such as earthquake insurance, water or sewer protection, flood insurance and more. Typically, these will not be included in a standard policy.
Compare Quotes Strategically
Taking the time to develop a strategy for comparing homeowners insurance quotes can give you an edge. Do not forget that insurance companies are vying for you as a customer, and many offer rewards for taking out certain policies.
Price comparison sites have quickly become the go-to method for comparing renters insurance, homeowner’s insurance and other types of insurance, such as auto insurance. These websites allow consumers to enter their details and see hundreds of insurance options.
Not only does this give you the opportunity to see the best homeowners insurance available, but it also saves you a lot of time: You will not have to get quotes from one website at a time. Additionally, these websites sometimes offer special deals, giving you even more money off your insurance policy.
Experts recommend getting a quote from at least five companies before you settle on a policy.
For renters, Geico renters insurance gives you the chance to add-on specific elements to your policy, making it personal to you as well as offering plans from as little as $12. Their website features a property calculator so that you can work out exactly what coverage you will need.
Finally, buying your insurance at the right time could save you as much as 20 percent. If you renew your policy three weeks before it ends, you will generally pay significantly less than updating it on the day that it expires.
Upgrade Your Home Security System
One thing that insurance companies look for when agreeing to give your coverage is your risk level. If a company believes you are likely to file a claim, your insurance will cost more.
According to the FBI, an American home is burglarized every 15 seconds. Those without a decent security system may be three times as likely to become a victim of burglary.
A good home or apartment security system can significantly decrease your risk of burglary, in turn helping to lower your monthly cost. By installing or upgrading your home security system, you could stand to save as much as 20 percent on your insurance quote. This is especially important if you live in an area with a higher crime rate. You will be more likely to pay more in insurance if you do not have an up-to-date home security system.
Some people may think that upgrading their home or apartment home security will cost a lot of money. While the initial equipment and installation will cost you some, it will not take long to break even when you compare this to how much you will save each month. Installing or upgrading your system may not be as pricey as you think, with some of the best home security system companies offer security equipment and 24/7 monitoring for as little as $40 per month.
Bundle Multiple Policies
It seems like we need to have insurance for almost everything these days. For this reason, it makes sense to bundle your homeowner’s or renter’s insurance with other policies you are taking out: Car insurance is a prime example. Many companies offer some excellent auto and home insurance bundle quotes. When you take them out together, you may receive a discount.
Many of the top insurance companies will allow you to take advantage of their best car and home insurance bundles. You can compare these bundles using price comparison sites to find a deal that suits you.
Additionally, you can combine your car insurance with your renter’s insurance, potentially saving you hundreds of dollars every year. Paying your insurance premium annually rather than monthly will usually give you an even bigger discount. For example, Progressive offers an excellent range of some of the best auto and renters insurance bundles. The company claims to save you as much as 12 percent when taking out the two together.
You should consider bundling if you are unable to find two separate policies for a better price, wish to buy insurance on a home that is considered high risk or want to build a loyal relationship with an insurer.