Wednesday, April 17, 2024
HomeMortgage Insurance5+ Ways to Save Money on Mortgage Insurance

5+ Ways to Save Money on Mortgage Insurance

Home insurance costs are rising, so it’s time to review your policy and make sure you’re getting a good deal.

Here are six ways to save money on your homeowners insurance in 2024:

1. Choose a Higher Deductible

A deductible is the amount you pay out of pocket before your insurance kicks in. A lower deductible means you pay less upfront if you need to file a claim, but you’ll also pay more in premiums.

Consider this: If you have enough saved up to cover a higher deductible, say $2,500 instead of $1,000, you can save on your premium.

2. Ask for Discounts

Many homeowners miss out on discounts offered by insurance companies. Here are some common ones:

  • Home improvements: Upgrading your home’s security system, smoke detectors, or roof can lead to discounts.
  • Bundling policies: Combining your home and auto insurance with the same company can often save money.
  • Safety features: Owning a home with certain safety features, like storm shutters in hurricane zones, can qualify you for a discount.

Don’t be shy! Ask your insurance company about available discounts and see if you qualify.

3. Protect Your Home from Disasters

Taking steps to protect your home from natural disasters can lower your premium. For example, installing storm shutters or impact-resistant windows in hurricane-prone areas can save you money.

Talk to local insurance professionals to learn about specific ways to fortify your home and get discounts.

4. Get the Right Amount of Coverage

Your home insurance should cover the cost of rebuilding your home, not its market value. Market value includes the land price, while rebuilding cost focuses on the house itself.

Don’t overpay! Make sure your coverage amount reflects the rebuilding cost, not the market value.

5. Shop Around Regularly

Home insurance premiums can vary greatly between companies. It’s wise to get quotes from several insurers to compare prices.

The handbook recommends getting at least three quotes. Make sure to shop around at least once a year to ensure you’re getting the best deal.

6. Look Beyond Price

While saving money is important, customer service matters too. If you have a claim, you want an insurance company that’s easy to work with and fair in handling your case.

Research the reputation and customer service record of the companies you’re considering before making a decision.

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