Saving on Homeowners Insurance

Posted February 11, 2010 – 7:27 am in: Loans
     

Your home obviously holds a ton of importance to you. It’s the place of residence where you can go back to every night and sleep tight in. It’s filled with everlasting memories and important objects of affection. But what happens in the event of a tragic disaster? I’m talking about a type of disaster that completely destroys your property?

Many families are cutting corners today in this tight economic climate by reducing or completely eliminating home insurance. This is a very bad and irrational decision on the homeowner’s part.

Instead, focus on ways you can save on your home insurance. A lot of home owners are saving on their premium by raising their deductible. Raising the deductible one level can save a family hundreds of dollars every year on home insurance.

Home owners also receive a discount on their insurance premium by installing proper safety devices around the home, such as smoke alarms, fire extinguishers, and burglar alarms. Is your home equipped with these?

Purchase more than one policy from the same provider. This process, known as bundling, can save you even more money each year on your home insurance policy. Companies award clients that continue to come back for more than one insurance policy.

Always insure your home for 100% of the cost to replace the home after a loss. The above scenario is labeled as “insured to value,” and it’s yet another way to save big.

Strong credit scores really go a long way in influencing insurance provider’s decision to grant a high or low rate. A lot of folks do not realize this, but maintaining a strong credit score is highly important especially in the insurance world. Insurance companies view a good credit score as a direct indicator of the responsibility of the individual.

As you can see, there are numerous ways to save or reduce your home insurance premium. Simply cutting back costs or eliminating the policy altogether is not very responsible. Protect your best asset.

Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Arica’s leading Insurance information portal.

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