Most people spend a lot of time researching the best mortgages for their homes. They neglect to give as much thought to which home insurance to get. It’s money out of your pocket to secure your dream home, so you need to study your options. The following tips will help you to save money on your home insurance.

Quick Tips To Save Money On A Home Insurance

1) Know what you are insuring

Insure only your home and not the land it stands on. In the case of fire, flood, theft or other events, only your home will be covered by the policy and not the land. You may have paid a whopping sum while buying the house because of its location. That has nothing to do with the cost of rebuilding the home, which is covered by insurance.

2) Look around

There are a number of insurance companies in the market. Find them in the phonebook or on the internet and get quotes from as many as possible. Ask for recommendations from friends and family. Compare your options not only by price but by service quality, claim settlements, customer complaints and financial stability. Most of this information is available online.

3) Increase your deductible

The deductible is what you pay upfront in case of a loss before the insurance company pays. Higher deductibles mean lower premiums. Starting with $500, try to go as high as you can. A $1000 deductible will save you between 20-25% of insurance premiums while a $2500 deductible may take your savings up to 30%.

4) Spend on home security

Most insurance providers give a discount if you have dead-bolt locks, a burglar alarm or smoke detector. Check with your insurer which security system they offer discounts for. Work out how much it will cost you to install one. The expenditure may be worth the amount you spend on premiums.

5) Use the same insurer

Most insurance companies will give you a discount if you buy more than one kind of policy from them. Check if combining your auto insurance and home insurance is cheaper than buying each from different companies.

6) Make you home stronger

Your insurance agent can help you with advice on how to make your home more resistant to calamities. You may get a discount for having storm shutters, reinforced roofs or retrofitting an old house. Modernizing the heating, plumbing, and electrical systems will decrease the risk of damage by fire or water.

7) Stay Loyal

You may be eligible for an exclusive long-term discount if you stick with the same insurance company for a number of years. Nevertheless, don’t forget to compare prices with other insurers every year. Your insurer’s discounted price should be less than what the competition offers.

8) Shop for private players

In areas prone to fires, storms or floods, private insurers may offer you equal or better prices than a government plan. Even if you already have a government policy, look for private options and switch if you get a better deal.

With these tips, you are all set to buy the perfect insurance policy for your beloved home.