People’s Mortgage Company’s Tips to Lower Your Homeowners Insurance

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Whether it’s getting rid of cable or opting to cook and eat at home on a consistent basis, homeowners across the board are always looking for ways to reduce their monthly expenses. But when it comes to matters related to the home, many homeowners are leaving money on the table in the form of homeowners insurance.

Before you renew your current policy, here are some simple things you can do to lower your monthly payments.

1. Shop Around. You can’t buy a home without purchasing insurance first, but that doesn’t mean you’re stuck with the insurance provider you’re currently with. Make sure you compare different companies and find the best deal. Don’t leave this for the last minute because you don’t want to get stuck with a policy that’s expensive. Check consumer guides, ask friends and neighbors and search online insurance quote services, which will give you an idea of price ranges and tell you which companies have the lowest prices.

2. Bundle Your Insurance. Many insurance companies will offer discounts if you package multiple policies, such as your car, boat and home insurance. On average, one can save 5 to 15 percent off premiums if they purchase two or more policies together.

3. Safety First. Installing carbon monoxide detectors, smoke detectors and alarm systems can reduce your monthly bill, but you need to let your insurance agent know about any changes you make. Also, ask your insurance agent what steps you can take to make your home more resistant to natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Adding a new heating or cooling system or changing out the electrical wiring can also help lower payments.

4. Increase Your Deductible. Most homeowners prefer small deductibles, but in the long run, taking on more of the financial burden if something should happen to your house is a great way to save money. By raising your deductible, your monthly costs can decrease as much as 5 to 10 percent.

5. Rethink Value. It’s not necessary to insure a house for the amount it was purchased for. Even if your house were to completely burn down, you’d still have the land, so consider that when deciding the total amount you need to insure. A good insurance agent will be able to help you calculate the proper replacement cost of the house.

It’s also wise to talk with your real estate agent and see if they have any thoughts on how to lower the cost. Lastly, be sure to review your policy each year to ensure that it still accurately covers your home.

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