Homeowners insurance is one of the vital ways to protect yourself against the costs of fixing up your home after damages, or replacement of personal items. One of the reasons that have led to a slow uptake of homeowner’s insurance is the high premiums and costs. However, you can lower your costs and still enjoy the best coverage on your home and all personal items.
The costs of purchasing the policy can vary with margins as large as hundreds of dollars depending on the company you choose. As a matter of prudence, ensure to shop widely and get as many quotes as possible. In this guide, we look into the various factors that can lower your costs and get you the maximum benefits payable on our policy in Texas.
Raise Your Deductible
This is the money you pay from your pocket towards the fixing up of your house before the insurance company can pay the claim. Generally, the higher the deductible, the lower the premiums. In a recent survey, most insurance companies in Texas offering homeowner’s insurance ask for a deductible of at least $500. If you can raise your deductible to more than $1000, you can save up to 25% on your premiums. This means that you will have to pay more money from your pocket, but you will have lowered your premiums.
However, be realistic when increasing the amount of your deductible, it is not wise to save up on premiums only to find yourself unable to cover the amount of the deductible.
Hurdle Your Policies Together
Most companies are composite insurers, meaning that they offer various policies under one roof. This provides an opportunity to get a discount on your homeowner’s insurance. By bundling your policies under one insurer, you can negotiate a better rate for your homeowner’s insurance premium. Ask your agent for their loyalty programs that come with massive discounts. This makes your homeowner’s policy cheaper.
Eliminate Unnecessary Coverage
Before you go ahead and buy or renew your homeowner’s insurance policy, ensure to evaluate your policy and remove any coverage that you do not need. It is important that the coverage is enough to cover the structure of your home as well as the contents. Enlist the services of an insurance consultant or agent in Texas to go through the rebuilding costs. They can calculate the necessary coverage for your home. Create and update your home inventory and use it to evaluate the amount of coverage you need.
Remember that there is a difference between what you paid for the house, and the costs of rebuilding. Refrain from including the value of the land when deciding how much insurance to buy. Otherwise, you will pay a much higher premium than is necessary.
Reinforce Your Home
This is not only useful in reducing your premium, but it also makes your home safer. Make a budget for reinforcing your roof, add storm shutters and renovate the house to be earthquake resistant. These and more reinforcements reduce the risk of fire, theft, water damage, as well as extreme weather. The initial costs of reinforcing your home may be high, but you will be in a better position to negotiate lower homeowner’s premiums.
Choose Annual Premium Payments
Many insurers in Texas offer different premium payment plans, including monthly, quarterly, half annually, annually, or single premiums. When you make premiums payments, there is a processing fee, which might add unwanted costs to your homeowner’s insurance policy. Annual and single premiums will significantly reduce your insurance costs, and you might save at least $50 each year.
In conclusion, you should get as much information as possible on ways to reduce your insurance costs. With the above tips and more, get as many quotes as possible and talk to insurance consultants and agents to learn how to bring the costs down.