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7 Tips to Save Money on Homeowners Insurance


Having a home is one of the biggest investments you will ever make. As such, it’s important to take an active role in protecting that investment. One way to do so is by getting a homeowners insurance policy. If you’re buying a house, condo, co-op or any other type of residential real estate, you will almost certainly need homeowners insurance in order to finalize the deal. Even if you live with your parents or another family member for now, this won’t always be the case – and even if it is, it’s never too early to think about insuring your home! Homeowners insurance can protect your residence from all kinds of perils, such as fire, vandalism and natural disasters like floods and earthquakes. In addition to covering the cost of repairs if anything catastrophic happens (or even smaller things like broken windows or a leaky roof), most policies also include liability coverage should someone get hurt on your property and cost you money as a result.


What is Homeowners Insurance?

If something happens to your home – such as a fire – homeowners insurance will cover the cost of rebuilding it. To give you some context, according to data from the National Association of Insurance Commissioners (NAIC), the average cost to replace a home after a standard fire is around $150,000, which is the minimum most insurers will cover. However, the average homeowners insurance policy doesn’t actually cover rebuilding your home, but rather the costs associated with living somewhere else while it gets rebuilt. This is typically referred to as the dwelling coverage portion of your policy. Homeowners insurance also covers additional living expenses (known as a loss of use provision) in case you can’t live in your house for a period of time because of a covered loss.



Tips to Save Money on Homeowners Insurance

Find Out How Much You Really Need: Make sure you know exactly how much homeowners insurance coverage you need by calculating the total cost of replacing your home – including the cost of demolition and land clearance if needed – and all of your personal belongings. This will help you determine how much coverage you need. You’ll also want to consider potential costs like living expenses and potential legal costs if you or someone else is injured on your property. Ask About Deductibles: You’ll want to research which homeowners insurance policy with a deductible best fits your needs. A deductible is the amount of money you will have to pay if something happens to your home before your insurance pays out. The amount of your deductible will determine how much you save on your homeowners insurance policy. Check Out Discounts: Many homeowners insurance providers offer a variety of discounts. These might include things like installing a fire alarm, having a security system or having smoke detectors in your home. You can also look for other discounts, such as for people in certain occupations, living in a safe neighborhood or installing a carbon monoxide detector. Try Estimate Comparisons: If you’re buying a new house or recently moved to a new city, try getting estimates from several different homeowners insurance providers to see who offers you the best price. Ask About the No Claims Bonus: If you’ve been with the same homeowners insurance provider for a long time, you might be able to negotiate a lower rate by mentioning a no claims bonus. This is a discount that certain insurance providers offer to policyholders who have gone a certain period of time without filing a claim. Check Out Bundle Options: If you own other types of insurance (such as car insurance or renters insurance), check to see if your homeowners insurance provider offers a bundle option, which could save you money on your homeowners policy.

Conclusion

Homeowners insurance is a necessity if you own a home or property. However, if you don’t actively shop around for the best policy, you could end up overpaying. To make sure you’re getting the best deal, take the time to research various homeowners insurance policies and providers. You can also compare rates online to find the best deal.

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