Thursday, March 8, 2012

5 Tips To Save On Homeowners Insurance

No doubt all the homeowners need a home insurance policy to protect this valuable asset from natural and man made disasters. These disasters may include storms, flooding, earthquakes, fires and theft.

Many homeowners don't like to pay high premiums to protect their homes. But there are several ways for them to save on the home insurance costs.

This presentation includes the five key tips to save on homeowners insurance. These easy to follow tips can save up to 25% or more on insurance costs every year.

1. Maintenance of the home: Home maintenance is a key factor to keep the insurance costs lower. Well maintained homes are less vulnerable to small damages and hence the fewer claims. If there are no small claims in previous three years, it plays a major role to calculate insurance premiums for the current year.

2. Shop Around: Most people like to stay with the same insurance broker which is good thing. But, keep sticking to the same broker or company may be costly sometimes.

It is a good idea to shop around and get quotes from many service providers and then compare those with the current broker rates. If the previous broker gives the competitive rates, stay with him/her otherwise switch.

3. Home Security Systems: Home security systems such as burglar alarms, fire and smoke detectors are very important to save on insurance costs. These can lower the premiums by as much as 5% to 10%.

Having all of these systems installed in the home is a wise decision. Landlord may need to give the proof of subscription with the security provider to their insurance provider.

4. Raise the deductible: Deductible is the amount of money paid from landlord's pocket before claiming from the insurance provider for the damage to the property. Most plans need a deducible of $300 to $500. But if there is an option to raise it to $1000 or more, then it lowers the yearly premiums. It means the homeowner is taking care of little damages (up to $1000) by himself/herself.

5. Buy online: This is the era of e-commerce. Everything can be bought online so do the insurance for your sweet home. There are many benefits of buying homeowners insurance online.

When a company sells any product online it saves lots of overhead costs and they happily pass on these savings to the consumer. Same is true in case of home insurance, the selling companies save up to 30% of the costs such as brokerage fee or office expenses.

The companies pass on these savings to online buyer. Also it is very easy to compare different plans and get quotes from many insurance providers by visiting online.

Finally, there are several ways to save on homeowners insurance. The key five are: maintenance of the home, shopping around, security systems and smoke detectors, raising the deductible and shopping online. Hope that you will use these tips to save on your property insurance.