Home insurance might give you a peace of mind, but it can get quite pricey. A number of factors can affect the cost of your home insurance premiums including the neighborhood you live in and your credit score. However, all hope is not lost. It is still possible to make your insurance more affordable. Here are seven effective ways to lower your home insurance premiums.
Raise Your Credit Score
Believe it or not, your credit score can play a big part in your home insurance costs. An insurance company will look at your credit rating before determining your insurance score. The higher credit score you have, the better home insurance rates you will get. If you have a history of late payments or a lot of debt, you may get charged higher premiums. You can raise your credit score by always paying your bills on time and keeping your credit card balances low.
Install a Home Alarm System
Getting a home alarm system will not just give you a peace of mind; it can also lower your home insurance premiums. When your insurance company sees that you are taking extra measures to increase your home's safety, you may get a discount.
Make Necessary Home Updates
If you want to keep your home insurance premiums low, you have to properly maintain your home. For example, if your electrical system is very old, you should replace it as soon as possible. A faulty electrical system can increase the risk of fires, so insurance companies are more likely to charge you more money for your premiums. If there are frequent storms in your area, you should think about installing storm shutters to protect your home from damage. These updates are big investments, but they could end up saving you money down the road.
Smoking tobacco does not just hurt your health; it can also negatively affect your home insurance premiums. If you smoke inside the house, you can cause a fire or damage the walls. Insurance companies are well aware of this fact and will likely charge you higher premiums. Quitting the habit can improve your health and save you money.
Get Rid of Your Trampoline
Do you have a trampoline in your backyard? If so, you should give serious thought to getting rid of it. A trampoline may provide great entertainment for your kids and their friends, but accidents can happen. If one of your child's friends falls off the trampoline and gets injured, your insurance company may be responsible for the medical costs.
Provide Proof of Dog Obedience Training
If you own an aggressive breed, such as Doberman or pit bull, your insurance company may raise your home insurance rates. Dogs like these have been know to bite people, so your insurance company just wants to protect itself. However, it is still possible to reduce your premiums without getting rid of your dog. If you show the insurance company proof that your dog has been properly trained, you may get charged lower premiums.
Ask About Discounts
Never be afraid to make an appointment with your insurance agent to ask about other discounts. For instance, if you are retired, you may receive lower insurance rates because you are at home more and less likely to experience burglaries.
If you follow these helpful tips, you can make your home insurance a lot more affordable. However, if your premiums are still not as low as you need them to be, schedule an appointment with your insurance agent soon to learn more about this topic. He or she can help you find other ways to lower your insurance rates.
After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.