Four Ways To Avoid Overpaying For Your Homeowner's Insurance Policy

Homeowners insurance is important to ensure repair bills don't leave you bankrupt, and it's even required if you still have a mortgage on your home. But while this insurance is essential, it does not have to be costly. There are a few ways you can lower your homeowner's insurance bills and avoid overpaying.

Buy from your auto insurance provider.

Most big insurance companies offer both homeowners and auto insurance. If you purchase both types of insurance from the same company, they will often give you a dual-policy discount. In some cases, you may save as much as 10%, especially if you have kept the same auto insurance provider for several years. If the company does directly not offer you a multi-policy discount, ask for one.

Keep your home safe.

When you purchase a homeowners insurance policy, the company will ask you some questions to determine your risk. They'll ask if you have a smoke detector, a fire extinguisher, a CO detector, and so forth. If you purchase these items to keep your home safe, you will save money in the long run because your risk level -- and therefore your insurance premiums -- will be lower. Other safety changes to make include changing your locks, making sure all your windows lock, and installing a vent hood over your range. Let your insurance company know whenever you make a safety upgrade so they can adjust your rate accordingly.

Raise your deductible.

The deductible is the amount of money you'll have to pay towards a claim before the insurance policy "kicks in." For example, if you suffer $5000 of damage to your windows and your deductible is $500, you'll have to put $500 towards the repairs, and the insurance company will cover the additional $4,500. The higher your deductible, the lower your rates. So, a good strategy is to select a higher deductible, and then set the money you save on your premiums aside to cover the deductible if you do ever have to make a claim.

Shop around.

One year, insurance company A may offer you a better rate. The next year, insurance company B may offer the better rate. Take the time to shop around for insurance each time your policy is about to expire so you can be sure you're always getting the best deal. Check not only with the big insurance companies but also with smaller local providers.

Contact a company like United Counties Insurance Group for more information and assistance.