Not carrying homeowner’s insurance isn’t a way to save money. It’s a way to gamble with the roof over your head. And that’s not something with which you want to gamble.
What happens if a freak windstorm blows a tree into your house or a burglar causes major damage to your windows? If you don’t have homeowner’s insurance – the cost falls on you.
Unfortunately, homeowner’s insurance can cost you a pretty penny. And when pennies are tight, it’s best to find a way to save. Lucky you – you can.
Begin by shopping around. When most of us talk serious discounts, we often refer to Black Friday deals, shoe sales, and airplane tickets. There are a lot of other companies which offer discounts too – such as insurance companies. You might be able to get a discount through your college alumni association. Do you belong to a wholesale club like Costco or Sam’s Club? Some insurance firms offer discounts to members. Consider both the price and what’s included to determine the best deal.
As you consider what’s included, it’s important to know the difference between replacement cost and cash value. Some policies cover replacement costs. This means your insurance company will insure you for the cost of actually replacing damaged items. Cash value means your insurance policy will only reimburse you for the current value of the damaged item. In many cases, this value is less than the cost of replacing an item. Why choose one over the other? Replacement cost policies are more beneficial in the event of an accident, but they typically come with a heftier price tag. If you aren’t able to afford a replacement cost policy, a cash value policy might be a better bet.
Another way to save is to bundle your policies. Many insurance companies will give you a discount for bundling. By using the same company for both your car and homeowner’s insurance, you could reduce the overall cost of both.
Thinking of doing a little work on your home? Some home improvements can actually lower the cost of your homeowner’s insurance. For example, if you own an older home, safety updates – like updating the plumbing or electrical work – could lower your premiums.
Have more questions about homeownership? Give me a call or email me today.