Cheap home insurance is hard to come by and as home insurance is a must for any homeowner, or real estate investor, the costs can really add up. But just because it is a necessity does not mean that you must pay a fortune. So, what is the secret to cheap home insurance?
Research Available Companies
There are more than four hundred home insurance companies to choose from and not all of them are reputable or affordable. The first step in choosing cheap home insurance is to spend time researching your options.
We suggest beginning with the bigger, highly recommended insurance providers like Lemonade, Liberty Mutual, State Farm, Nationwide, and Travelers.
Each of these companies will offer you a different rate depending on the details of the insurance plan you choose. For a quick quote you can visit the provider’s websites and fill in a quote request online. Keep in mind, though, that while website forms will provide you with a rough quote, it is best to talk to a representative before deciding on a plan.
Talk to a Representative
There are multiple benefits to talking to a representative versus requesting an online quote. Perhaps the biggest advantage to talking to a representative, however, is their familiarity with company policies and current promotions and discounts.
When you speak with a company representative, let them know exactly what you are looking for. The agent will ask a series of questions that will help them to determine any standard discounts for your policy. After you have answered these questions, be sure to ask if the company offers any additional discounts, for example:
- Policy bundling discounts
- AARP discounts
- AAA discounts
- Alumni organization discounts
You may also find it helpful to search online for coupon codes and discounts for each insurance provider. Sometimes you can find discounts online that even company representatives are unfamiliar with.
When choosing your homeowner’s insurance plan, be prepared to make tradeoffs. For example, if you look at the five providers mentioned previously, you may find that Liberty Mutual has a better reputation and better reviews than Nationwide, but Nationwide is a cheaper plan. Better customer reviews can be very persuasive and are a great reason to choose one company over another, but if you can’t justify the additional cost, consider a plan with a higher deductible.
If you choose a homeowners insurance plan with a high deductible always make sure that you can afford that deductible if needed. Choosing a high deductible plan is pointless if you are unable to pay that deductible when you need the plan most!
Consider Making Some Changes
Increasing your deductible is a good way to find an affordable home insurance plan, but if you have no wiggle room, there are other options to decrease your premiums. The easiest and most affordable way to drop your premium cost is to decrease the risk that the insurance company is taking.
For example, installing smoke alarms, CO2 detectors, a home alarm system, etc. if you do not already have them, these small, simple safety devices can knock a significant chunk off your monthly premiums!
Cheap Home Insurance Today!
Cheap home insurance does not mean skimping on coverage, you can get affordable full coverage! Spend a little extra time researching policies and speak with a company representative and you can get more bang for your buck!