3 Easy Ways to Save on Homeowners Insurance - Personal Finance (blog)

14Jun

Purchasing homeowners insurance does more than just protect your house against property loss. Having homeowners insurance is a good investment to help keep your personal finances in order in case of a sudden property loss. As with any kind of investment there are upfront costs, but with homeowners insurance there are ways you can get a good bang for your buck by shopping around to make the most of discounts offered. Here are three easy ways to save on homeowners insurance and maintain peace of mind, knowing you have adequate coverage:

Savings on good location
Think about homeowners insurance when you are buying your home. There is a reason why realtors say location matters–you can see a savings of 5% to 20% on your homeowners insurance by buying in an area that is low in crime, above flood levels, next to or close to a fire hydrant, a brick house rather than a frame house, and close to a fire house and/or police station.

Updating for savings
Before buying insurance for your home, update your house to withstand natural disasters and other property damaging events. Depending on which area you live in: make sure your roof will hold up to wind and rain storms; hurricane and/or earthquake proof your windows and doors; make sure your pipes and plumbing will not leak or burst; and check your electrical systems that they will not cause fire damage. This can save any where's rom 5% to 25% on your premiums and even more if you can afford to raise your deductibles and/or bundle your home insurance with your auto, boat, or mobile home.

Home security system savings
You can reap savings of up to 25% by installing a home security system, whether it be a wired system or one of the wireless alarm systems. As with auto insurance, big discounts can be had for protecting your home and property against break-in theft and stolen goods. Although wireless alarm systems are more costly they are easier to set up by the homeowner and less damage is done to your walls, which makes them great for older homes where upgrading of electrical circuits may be needed. Other money-saving upgrades to your home security system include smoke/fire alarms, dead-bolt locks and a sprinkler system.

Before saying 'yes' to the investment of your dream home, make sure you can answer the same way to the investment of homeowners insurance. This is an important step in the home-owning cycle, as it protects your family, your financial assets, and the future value of the investment.

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