Like auto insurance, there are a couple of things that you can do in order to keep your home insurance premiums low. For example, you can qualify for discounted home insurance premiums by raising your deductibles and making your home disaster-proof. Additional cost-cutting measures that you can adopt include, bolstering your home security and improving your credit score.
1. Increase Your Deductibles
This is the sum of money, which you have to pay before an insurance company can settle your claim. A higher deductible automatically equates to a lower insurance premium. This is because you’ll be paying for most of the losses from your pocket
2. Make Your Home Disaster Resistant
Increasing the resistance of your home to natural disasters such as windstorms, earthquakes, wildfires and hurricanes can result in reduced homeowner’s insurance premiums. This can be achieved by:
– Installing storm-resistant shutters. This helps in averting the risk of flying glasses in case of a windstorm or hurricane.
– Cleaning the gutters. This is important in preventing instances of clogging that may cause damming on the roof. Gutter cleaning also helps in getting rid of debris, which may ignite in the event of a forest fire.
– Sealing the attic and other crawlspaces. The use of metal mesh screens is crucial in blocking flying embers from getting into you home if there is a bushfire.
3. Boost Your Home Security
Improving the security of your home through the installation of burglar alarms, surveillance security cameras and dead-bolt locks can lower your home insurance premiums. This is because you have taken the steps to protect your home from external assailants.
However you also need to go a step further and safeguard your home from internal threats. For instance:
– Install and maintain a smoke detector. This helps in protecting your home from the risk of fire and smoke damage.
– Install a fire alarm that instantly alerts the fire department. This lowers the odds of your home being destroyed by fire in the event that you are away on a business or holiday trip.
4. Improve Your Credit Score
Credit score not only affects how much you’ll pay in home insurance premiums, but the type of policy you can purchase. This is because your credit rating determines your risk level. According to numerous studies, persons with poor credit scores are more likely to file a claim.
Understanding the factors that affect your homeowner’s insurance premiums will enable you to save. However they’ll also ensure that your home is protected from internal and external hazards.