Are You Overpaying for Your Home Insurance?

Home insurance is a delicate balance between coverage and cost. The savvy home owner periodically shops online for cheaper home insurance quotes to find ways they can save on their existing home insurance rates.

Shop Around for the Best Rates and Coverage
After receiving multiple quotes from insurance companies, you’ll find a wide range of home insurance rates among carriers for identical coverage. After comparing them side by side, you’re apt to find a cheap home insurance rate from one company while another company will charge considerably more for the same coverage. Or you may find that you are able to get a higher level of coverage for the same price that you’re paying now.

Increase Your Deductible
The premium cost of your policy is lower with a deductible than without. Check your free home owner insurance rate quotes to see if they offer a higher-than-minimum deductible on your coverage. But remember, when filing a claim, you must pay that amount first and your insurance covers the remainder.

Ways to Find Hidden Savings
Talking to your insurance agent or shopping online for competitive quotes may result in getting discounts on your insurance without sacrificing your level of coverage. For example, many companies offer security discounts when you the use deadbolt locks, smoke alarms, fire extinguishers, sprinkler systems and security systems on your property.

If you currently have multiple insurance policies with different companies, you should be eligible for a multi-line discount when you consolidate your policies with one company. This is something to also consider if you’ve recently gotten married and your spouse has separate policies for auto, home or life insurance.

Evaluate Actual Cash Value vs. Replacement Cost
Someone breaks into your home, stealing your stereo, television, camera and some of your other electronic toys. When you submit your claim, you find that your policy pays on the cash value of the property less depreciation. So, now when you go to the store and replace your old stereo system and T.V. with new ones you’ll be out some cash.

This is a perfect example of when paying a bit more for replacement coverage versus the lesser cost cash value coverage may be worth it, especially if you’ve taken inventory of your belongings and realize how much it would take to replace everything you own.

Talk to your agent and take a bit of time to shop online for multiple, competitive home insurance rate quotes. It’s the smart way to ensure that the price you’re paying for your coverage is competitive and meets your current needs.