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How to save money on your home insurance premium?

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A home is one of the most valuable assets that you own. It can be very devastating if some unfortunate event causes damage to this valued possession of yours. Thus, it is recommended that you purchase a suitable home insurance plan. A good home insurance plan can help you in case of loss/damage to your home and its contents by any unforeseen events. We are all looking for ways to save money and if we know the right avenues of saving it then it’s always fun.

Let us see few definite commonly practised ways to reduce the premium.

Raise your deductible

A quick way to reduce your premium is to raise your insurance deductible. The amount you pay if you have to make a claim. Raising your deductible puts money into your pocket every month that would have gone to your insurer. Be sure to cover a bigger out-of-pocket expense if you need to make a claim.

Make your home more secure

Even the basics can save you money when it comes to home security. Having a smoke detector, burglar alarm or good locks can although seem very expensive and unwanted at the time of purchase but it is very helpful in the long run.

Avoid small claims

It may be tempting to file a claim with your insurer even when something relatively minor happening. It would be better off in the long run if you pay out of pocket for these smaller expenses. Some insurers offer discounts if you remain claim-free for a certain period of time, usually a few years.

Ask about lesser-known discounts

Unless you know what savings you might be eligible for, you can’t really save money. Some insurers offer additional discounts if you check fall into:

• Don’t have any smokers living in the house.

• Recently bought your home.

• Pay your premium via automatic bank payments.

• Choose paperless billing.

• Work in a specific career, such as teaching, engineering or firefighting.

Account for home improvements

If you've improved your home, you may be eligible for homeowner’s insurance discounts. Adding features such impact-resistant roofing which make your house tougher to damage could result in insurance savings. You might also earn a discount by upgrading outdated plumbing and electrical systems.

Request a new inspection of your home to evaluate these improvements to maximize your potential discounts.

Package your vehicle and home

Bundling home insurance with the same company typically saves you 5% to 15% on your homeowner’s premium. Many insurers provide discounts if you buy more than one type of policy from them.

Build your credit score

It may surprise you that your credit score can have a substantial impact on your home insurance premium. Many companies can use a credit-based insurance score to determine your rates. If your insurer thinks your credit score is too low you may have to pay higher rates.

If you find that your credit score is low, read your credit report closely to identify any errors. You can increase your score by paying bills on time and reducing credit card balances.

Check around

Rates for identical homeowner’s insurance coverage can vary widely company to company. You can save a lot of money or more by finding the cheapest rate.

Most companies have tools on their websites that allow you to enter in some basic information to get quick quotes. Comparing different companies’ rates might let you to save by switching insurers.

Look for private insurance if you are in a government plan

If you have a government plan, you should check with a private insurance agent or company. You may find steps that would allow you to buy insurance at a lower price in the private market.

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