Strategies for Saving Money on Homeowners’ Insurance

Rather than being seen as a luxury, homeowners’ insurance is far more accurately perceived as a necessity.

It is quite common for mortgage providers to decline a loan or financially support a real estate transaction without the buyer providing evidence of insurance coverage for the value of the property (in most cases, the purchase price).

Depending on the location of the property, homeowners’ insurance can be expensive, but there are some sensible and very effective ways to avoid spending more than is necessary.

Security systems and smoke alarms that are well maintained can help to lower insurance premiums and will definitely enhance safety.

By increasing the excess level chosen for the insurance cover, the lower the annual premiums could be. The risk of taking this option is that smaller problems and claims tend to be covered by the property owner, so that the high-priced excess does not need to be paid.

Multiple policy discounts offered by insurance companies to customers that keep other insurance contracts with them can deliver attractive cost savings.

If additions or other structures are to be built onto or close to the home, carefully planning should occur and the materials that will be used should be thoughtfully chosen. This is because insurance can be more expensive if certain types of materials are used.

Paying off a mortgage and being committed to regular policy reviews and comparisons can also allow property owners to make cost savings on their insurance cover.

Source: http://www.investopedia.com/articles/pf/07/homeowners_insurance.asp

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