Whether you are in a home or condo, having insurance is an important part of being a responsible homeowner. But like most things these days, the chances of it going up each year are high. So, what can you do to keep your premium as low as possible?
Every year, just before your insurance renewal, get quotes from at least three other insurance companies. Avoid getting dinged with a cancellation fee by switching companies mid-plan.
Ask if there are any discounts available. There may be discounts for bundling home and auto insurance, investing in home upgrades to security, plumbing, electrical, heating, or flood prevention systems like sump pumps or a sewer backwater valve, group rates (e.g., alumni discount), if you are 55 and over and claims-free, or if you are a non-smoker. Also, be sure you are only quoting for the coverage you need, as opposed to over-insuring.
Another way to save may be to increase your deductible to lower your premium. Just be sure you can afford to pay the deductible should you suffer any losses. Paying annually may also save you money on service charges and interest you otherwise might incur with monthly payments.
Takeaway: You could potentially be putting money back into your pocket instead of needlessly spending it if you set aside some time annually to review your insurance coverage and shop around.