5 ways homeowners can reduce insurance costs

October 30th, 2014 by admin

Aside from increasing your deductible, there are many other ways homeowners can save on their insurance costs. Allison Martin of Money Talk News discusses some of these options, which including bundling your different policies, installing a security alarm, ensuring you have the right level of coverage, maintaining good credit and finding out about discounts for which you could be eligible. 

Combining your policies: One way to save money is to combine or "bundle" your policies, which entails getting your auto and home insurance from the same provider. Choosing to "bundle" at least two of your policies can reduce your premiums anywhere from 5 to 15 percent, according to the Insurance Information Institute.

Install an alarm to improve your home's security: By installing a monitored home alarm system, you fulfill two important goals: increasing your home's safety and security and lowering your insurance premiums. Smoke detectors, burglar alarms and dead-bolt locks all reduce your home's risk, in turn reducing the rates you pay. Monitored alarm systems with dispatch capabilities and modern sprinkler systems are considered the most effective and can help you achieve higher savings, in the 15 percent range.

Check that you have the right level of coverage: While you must balance your insurance needs and fiscal needs, protection for your most important property—your home—is not something you can afford to skimp on. Despite this, many homeowners do not have adequate insurance—enough to cover replacement costs in the event of disaster, requiring a complete rebuild. It is critical that you have enough coverage to prevent this risk. At the same time, you don't want to have more coverage than you need. You can work with your home insurance provider and home builder to confirm you have the right level. In addition, make sure to maintain an accurate home inventory list of your most valuable possessions, adding updates to it regularly. 

Maintain good credit: Another way to lower your premiums is to maintain good credit. Check that there are no mistakes on your report, pay down your credit card balances and make timely payments. Remember that cell phone bills, utility expenses and rent can all appear on your credit report. Angela Colley offers more tips in her article. 

Find out about discounts: Since discounts differ between providers, be sure to consult with your individual company. Generally speaking, though, certain conditions can help homeowners, including a claims-free history and having a monitored alarm system installed for your home. In addition, senior citizens and responsible drivers can often qualify for discounts. If you meet these conditions, be sure to schedule an appointment with your provider.

Fundy Mutual, located in Sussex, New Brunswick, is committed to helping you save on home and auto insurance. We offer a range of discounts—loyalty, multi vehicle, claims free, senior driver, mature driver, exclusive electric heat, auto and property combination, alarm system, new home and increased deductible. Visit our website to learn more. You can also get an affordable car insurance quote or home insurance quote