Home Tech Buzz
5 Easy Ways to Lower Your Home Insurance Cost
Insurance companies generally offer discounts of a minimum of 5% for the installation of a burglar alarm, smoke detector or dead-bolt locks. If you install a high-end sprinkler system along with a burglar and fire alarm that rings directly to the police or other security monitoring service, some companies will cut your premiums by as much as 20%. These systems are expensive and not all of them meet the standard for a discount. Before investing in such a security system, ask your insurer which system they recommend. How much does their recommended system cost and how much will you actually save in premiums?
Don’t confuse what you paid for your house with rebuilding costs
Your homeowners policy probably covered for theft, wind and fire damage and other perils; however, those things do not apply to the physical land that your house is on. Therefore don't include land value when making the final decision on your homeowner’s insurance policy. Your premiums will be higher than they need to be if you do include the land.
Buy your home and auto policies from the same insurer
Insurance companies that sell auto, homeowners and liability coverage will usually offer up to 15% off your premiums if you bundle two or more policies with them. Always check to make sure the combined price is actually less than buying individual policies from different insurers.
Make your home more disaster resistant
Consult your insurance representative to see how you can make your home more resistant to wind damage and natural disasters. Storm shutters, making your roof stronger or using sturdier roofing materials can save on your premiums. Older homes can be made more earthquake resistant with some retrofits. Modernizing your plumbing, heating and electrical systems will minimize the risk of water and fire damage.
When you’re buying a home, consider the cost of homeowners insurance
If your house is close to a fire hydrant or in a community with a professional instead of a volunteer fire department, your insurance premiums will be less. If your home's heating, electrical and plumbing systems are under 10 years old, you will pay less. Brick homes are more resistant to wind, especially for those on the East coast. In earthquake zones, a wooden frame house is more resistant to earthquakes. Smart choices will save you up to 15% on your premiums.