Are you wondering how much does home insurance cost? Most likely you are if you are in the midst of buying a house. The answer to this age-long question depends on 4 factors :
- Your Stats – Who are you, what is your occupation, what you own, how do you live, etc. All these factors determine how much insurance companies charge you the premium.
- Your Home’s Value – How much is your home replacement cost? The figure will influence your home insurance cost as well.
- Which Insurers? – Different companies charge different price. And the difference can be very big at times.
- Any Discounts? – Many insurers provide discounts to reward behaviors that reduces risk. As a result, you can reduce your insurance cost.
So, having said all the above, How Can You Reduce Your Home Insurance Cost?
There are 7 Ways to that can help you do that.
1. Shop Around
You can potentially save a considerable sum of money by shopping around. Ask your friends, check the Yellow Pages or contact your state insurance department. National Association of Insurance Commissioners (www.naic.org) has information to help you choose an insurer in your state, including complaints. Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest home insurance cost price. But don’t consider price alone. Check the financial stability of the companies you are considering with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com) and consult consumer magazines. When you’ve narrowed the field to three insurers, get price quotes.
2. Raise Your Deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. [click to continue…]