How to Save Money on Home Insurance
Spring has officially sprung! Warmer weather brings more than just flowers and Robins. It’s the start of many outdoor activities: swimming pools are being prepped to open, trampolines and play sets are back out in the yard, and people are enjoying regular outdoor activity. You might even be taking a hard look at how to save more money to afford that summer vacation or that new backyard grill. We know it’s often difficult to make ends meet and cutting expenses is at the front of your mind. That’s definitely the responsible thing to do, but be careful of what you decide to cut.
Some people may consider canceling their homeowners policy because they have not had to use it. It may even be viewed as wasted money. Stop right there. Homeowners insurance is not where you want to start. There are several reasons not to cancel your policy including potential accidents and injury on your property. Simply having things like trampolines, playsets, and pools on your property increase risk of injury and accidents, and having a homeowners policy in place greatly reduces financial strain should an accident occur. In addition, once you cancel a policy, you may not have an easy time getting one in the future if there are reported accidents on your property.
However, there are ways to save money on your homeowners policy without canceling it. You can choose to pay a higher deductible and that will reduce the overall cost of your policy. Keep in mind that if a claim is submitted, you will have to pay a higher out of pocket amount. You can also take a good look at what your policy is covering and eliminate any useless coverages for things you don’t have. You may also consider paying annually instead of monthly for a decrease in cost. In addition, if you have several policies with the same company, they may offer you a discount for being a loyal customer. Talk with your insurance agent and discuss the best options for your policy and your financial bottom line.
Another way to reduce homeowners policy costs is to make repairs or upgrades to your home that decrease the risk of a claim such as wiring or plumbing. Lastly, if you have had your policy for a while and you use it to take care of small repairs in your home, just be aware that the amount of claims you have increases your overall policy costs; so save the claims for the big issues and lower your costs.
While it may seem like a no brainer to stop paying for something you have not had to use, it can be one of the most costly mistakes you make. Enjoy this season of outdoor play with peace of mind so you and your family can enjoy long days of swimming, bouncing, and playing in your backyard.