7 tips to meet your homeowners insurance cost without struggling

Lifestyle | 28 Mar |

Many people have lots of expenses every month such as bills. So, how can you stay ahead of your homeowners insurance cost? Keep on reading to learn more!

Are you worried about making ends meet and need to lower your homeowners insurance cost?

You’re not alone. About 40% of Americans struggle to make ends meet every month. You have a roof over your head, and you’re doing everything you can to keep it that way.

Cutting expenses is a great place to start, and you can do so by cutting your homeowners insurance premiums.

Want to find out how to do that and save money? Read these tips to find out.

Why Homeowner’s Insurance is Necessary

You might be tempted to cut your homeowners insurance completely, taking a chance that nothing will happen if you’re uninsured.

You’re taking a huge risk. Plus, your mortgage company requires that you have an insurance policy for your home.

It’s not a good idea to cancel your policy for several reasons. If something should happen to someone on your property, you could be held liable.

If you go without insurance for a period of time until your financial situation picks back up, it could be harder to get insurance again. If you are approved, then you can expect to pay a much higher premium for your policy.

1. Get a Higher Deductible

Your insurance rate depends on your policy. Your policy may already include discounts and it’s largely dependent on how much you’re responsible for in the event of a claim, and how much your insurance company pays.

If you have a lower deductible, that means that you’re going to be responsible for a lower amount and your insurance company will be footing the bill for most of the claim.

That would result in a higher monthly premium for you. You can lower your premium by increasing your deductible.

It would mean that you’re responsible for paying more out of pocket if something happens, so you have to weigh that trade-off.

2. Have Other Policies with the Same Provider

It pays to be a loyal customer of an insurance company. Seriously, insurance companies always offer discounts on their insurance products if you bundle your homeowners policy with your auto insurance or other insurance policies.

3. Know What You Really Need

Insurance policies can be pretty complex and difficult to understand. You may have policy coverage for things that you don’t need.

For example, you may have signed up for insurance coverage for valuables. Valuables coverage is great to have if you have items in your home like sports memorabilia, antiques, valuable artwork, or priceless jewelry.

If you don’t own any such items, you don’t need this type of coverage and can cut your homeowners insurance cost.

4. Make Smart Upgrades

If you’re struggling to make ends meet and need to lower your monthly payments, you’re probably not thinking about making major repairs or upgrades to your home. It seems a bit counterintuitive to spend money to save money.

Repairs are a sore spot for someone struggling financially, but if you fail to maintain your home, you’re only going to wind up paying for more down the road for repairs.

You can leverage debt to take care of some of these upgrades. A home equity loan or refinancing your home could give you the cash you need to make those changes. Choosing the right upgrades could lower your homeowners insurance cost in the process.

If your house is old, there’s a good chance that you have very old wiring and plumbing in your home. That increases the chance for a fire or major plumbing leak to happen. The more risk there is in the home, the more your insurance company will charge to cover that risk.

Get these issues upgraded, and you can lower the risk for your insurance company. That means a lower premium and you don’t have to worry about paying for damages down the road.

5. Pay Your Premiums Annually

Insurance companies want to get paid and get paid on time. They’ll offer discounts to encourage that. If you pay your premiums on an annual basis, you will save money and not have to worry about a monthly expense.

If you’re not in a position to take on a large annual payment, you can sign up for paperless billing and autopay. These are two options that save the insurance companies money and they’ll pass on these savings to their customers.

6. Don’t Make Small Claims

You have insurance and you pay for it every month, so you might as well use it by making claims for everything. That sounds logical, right?

Making a claim on an auto insurance policy will result in a higher premium and it’s the same with homeowners insurance. If you can pay for a problem out of pocket, do it without having to file a claim.

7. Shopping Around for Homeowners Policies

You want to make sure that you’re getting the best homeowners insurance policy for your situation. It makes sense to shop around for policies to make sure that you’re getting the best deal possible and you have adequate coverage.

You can start online by researching the top rated homeowners insurance companies. You can then check out reviews and reach out to each company for more information and for a quote.

Cut Your Homeowners Insurance Cost the Right Way

When you’re under financial pressure, you may be tempted to cancel as many programs and policies as possible and stick with the most basic expenses. If you try that with your homeowners policy, you’re leaving yourself vulnerable for a potential financial disaster.

You can cut your homeowners insurance cost in a way that lowers your premium and makes sure that you’re covered. You can shop around for insurance and review your policy to make sure that you’re getting the policy that fits your needs.

Along with cutting costs, you can take steps in the right direction to make money to boost your monthly income. Check out this article which shows you how to create an Airbnb business plan to create an extra income.

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