Steps That May Lower Homeowners Insurance Premiums
When you buy a new home, you need to purchase homeowners insurance (from a provider such as Ronald H. Krupa Insurance Agency) as well. This is usually a condition of any mortgage lender in order to get a mortgage on the home. There are a number of ways to get a lower premium on your insurance policy.
Reconsider Policy Amount
Many people get their insurance in the amount that they paid for the home, and this can sometimes be more insurance than they need. The purchase price of your home includes the cost of the land as well as the cost of the home. The insurance only needs to cover the cost to rebuild the home, as the land isn't going to disappear if something happens to your home. Each year when you renew the policy, check to see what is covered and make sure you still have any expensive belongings listed on the policy. If you've sold any of the valuables, have them removed so you're not paying coverage for something you no longer have.
Buy the Right Home
Certain qualities in a home make it likely to be cheaper to insure. For example, newer homes or homes that have had major systems, such as plumbing, electrical and heating, replaced in the last 10 years, tend to cost less to insure. Purchase a home in an area that isn't prone to floods or earthquakes, and opt for a brick home over a wooden one and you won't need to spend as much on insurance. Look for a home with nearby fire extinguishers or one that is near the fire department, as this limits the risk it'll be destroyed by fire.
Improve Safety Features and Security
Other additions to the home that increase its safety include making sure to have smoke, fire, and carbon monoxide alarms properly installed, having an alarm system and using stronger roofing materials. Ask the insurance company which improvements to the home may lower your premiums, as this will depend on the home and the insurance company.
Other Potential Discounts
Don't forget the more familiar ways to get discounts on home insurance. These include increasing your deductible, shopping around for lower rates, staying with the same company for multiple years, belonging to certain organizations and getting multiple types of insurance from the same company. Getting rid of swimming pools, old sheds or outbuildings or trampolines on the property can also lower premiums, as can not making a lot of small claims on your insurance policy.