Although homeowners insurance is typically a fixed and ongoing expense, there are still several ways that you can save money. With so many home ownership expenses to begin with, every little bit helps. Here are a few ways to reduce MA homeowners insurance costs.
Install a Security System
How can this help? Burglaries are more common in homes without security systems and insurance companies recognize this statistic. When you add an extra layer of protection to your home by installing a monitored security system – you are saving the insurance company money – which they, in turn, will pass on to you in the form of a reduced payment.
Raise Your Deductible
This one is pretty straightforward and simple. Increasing your deductible means that you will pay more out-of-pocket if you file a claim. For example, if you file a claim to cover $10,000 in damages to your home and have a $1,000 deductible, your insurance company will only pay $9,000. You cover the first $1,000 out of pocket as your deductible. A higher deductible results in a lower insurance premium. The one thing you need to consider with this adjustment is to make sure that you have the emergency savings on hand to to cover the out-of-pocket expense should the situation arise.
Ask About Discounts
Many insurance companies offer additional discounts – everything from customer loyalty to retiree discounts. Hence, it never hurts to ask! Be sure to also check back every year for any new discounts for which you may qualify.
Maintain a Good Credit Score
Insurers use credit scores to determine risk. Poor credit scores equal higher insurance rates. If you want to reduce your insurance costs, be sure to check your credit score on a regular basis and correct any errors as soon as possible so that your score remains consistent and as risk-free as possible.
Don’t file claims for small dollar amounts!
Every insurance claim goes on your record. Filing too many claims will increase your premiums, affect long-term costs, and may put you at risk for dropped coverage. Consider your deductible and how much insurance is actually covering beyond that amount. Compare the amount that you will receive from insurance to your potential increase in insurance rates before filing a claim.
More Ways to Reduce MA Homeowners Insurance
Contact your independent insurance agent to review your MA homeowners insurance policy. A yearly review ensures that your policy is up to date and that you are taking advantage of all available discounts. Do you have the correct home replacement value? What add-ons do you have and/or need? Your insurance agent can evaluate all of your options and help you update your policy to fit your current needs and situation while maximizing your savings. Now just think of all the fun ways you can spend the extra savings that have nothing to do with your home!