Most of the factors that determine your home insurance premium cannot be changed. Features like your property's location, its basic value and the value of its contents are somewhat fixed and cannot be significantly modified.
However, there are some measures that will dramatically reduce your insurance premium.
Home Security and Home Owner Insurance
Since all insurance companies are interested in lessening claims, they are willing to grant meaningful discounts to costumers that enhance home security. Insurance companies have specific definitions regarding the type of security they require their customers to install.
The basic requirements are quality locks for doors and windows, an alarm system and membership in a neighborhood watch program. Needless to say, every insurer has his own unique policy terms. Some of the security methods written below will significantly reduce your home insurance premium.
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- Locks are a proven method of enhancing your home security and reducing your premium. Common sense implies that households with good locks are less likely to be burglarized. Locks should be of premium quality and type. The most widely recommended lock types for perimeter doors are deadbolt locks or five lever mortise locks.
- Security on all perimeter doors should be evenly spread, do not neglect yard or garage doors.
- Security around windows should also be enhanced. Each window should be protected by at least two bolt locks unless the window already has a multi point locking system.
- If you have recently moved into new accommodations, replace all house locks that have external access. You never know who else has copies of the old keys.
- Signing up as a member and actually participating in the activities of your local neighborhood watch will reduce your home insurance premium. The program in which you participate must be approved and recognized by the relevant authorities.
- A good alarm system will surely lessen your home insurance costs. Each insurance company has its own standards and requirements regarding alarm systems. Simple logic implies that a more sophisticated and expensive alarm will do a better job at protecting your house. Alarm system prices range from a few hundred to a few thousand dollars. A more significant act would be to hire the services of a monitoring company. Look for home security deals that offer fire alarm as well as burglar alarm monitoring.
- It is always a good idea to check as many insurance quotes as you can. Consult your neighbors and nearby friends, ask them if they are satisfied with their insurer. Home insurance is a very competitive market. Click on ads of companies in the middle of their advertising campaign. You'll be surprised how many choice opportunities you can find.
- Check with the company that provides your present insurance policies such as your car insurance. Most companies offer discounts for clients who subscribe to more than one of their insurance policies.
- Another method to reduce your premium cost is to increase your insurance deductible i.e. the amount you have to pay before your insurer begins to pay. The larger your participation is in future claims the cheaper your premium will be. Do the math before you decide.
- Always check for new opportunities regarding policies and quotes. As we advised before, the market is very competitive and is constantly changing. The contents of your household, as well as your own personal status and other factors are also given to change, and perhaps this year your house will be cheaper to insure.
- A great cost cutting measure is to insure only your house, not the ¼ acre of dirt it is located on. Your house and its content are more likely to be damaged by nature or burglary than your land.
- Ask your manager or co-workers if your firm has special deals on group policies. Most commercial organizations work with an insurance company that provides discounts or special deals for its workers.
- Some insurance companies grant large discounts to clients with little or no claim history, discounts that range from 5%- 15%. If you don't have a serious claim history you'll be surprised to know how appealing you are to insurance companies. Find the one that shows the most gratitude.
We are sure you'll find the best and most cost-effective policy available. But before departing permit us to supply you with some last words of wisdom. Remember to carefully check the reputation of the insurance company you've found. Never compromise on the company's consumer service.
If and when the time comes that you have to place a claim - you'll certainly need it. Before signing a contract search for consumer reviews or market evaluations regarding the company. Good luck.