Being a homeowner comes with a lot of extra expenses. Many people fail to recognize just how much money they will put into their home when they first buy a house. However, in attempts to save money, you should never opt out of homeowners insurance. Yet, just because you should carry property insurance doesn't mean that you have to go broke to pay for it. There are many things that you can do to lower your premiums while still getting great insurance. Here are a couple tips.
1. Insure The House, Not The Property
When you first bought your house, you paid for both the land and the actual house. This means that the cost of your house initially was more than what it would be to rebuild the house. For instance, if the house burned down, you wouldn't have to pay the realtor fees, permit fees, or buy the land all over again. Instead, you would only need to pay for the cost of the materials and the labor to build it. Thus, you should get the actual house appraised, without the property, and insure the house for this amount. It will save you money each month in payments.
2. Bundle Your Payments
There are a couple ways you can save money by simply changing the way that you pay. If you pay all of your insurance premiums up front for the whole year, you can usually save a good deal of money. Make sure to ask your agent if they offer deals for paying it all up front.
Second, you should bundle all of your insurance policies together. You probably carry auto insurance, life insurance, health insurance and so forth. If you can get all of the policies, or at least a couple of them, from the same provider, you can save a lot of money. For each policy that you get with the same company, they will discount the whole amount. This is a simple way to get great insurance, without sacrificing on the coverage.
3. Shop Around
When you first buy your home, the mortgage lender may have an insurance company that they work with and will recommend to insure your property with. Although it may seem easier to just go with whomever they recommend, you can overspend on insurance if you don't shop around. You should get at least a couple quotes from different places, and use these numbers as leverage against other companies to get a good deal. You will be surprised at how much lower quotes you can get by shopping around.
By doing these simple things, you can get great insurance at a great cost. For more information, contact professionals like Scovotti Insurance.