It’s hard to admit that you’re stuck in a financial rut. Despite your best intentions and efforts, you’re in a negative situation. If you’re looking to save money, the old system is no longer working for the existing reality. You’re juggling bills and you can’t pay your home insurance premium any more. Don’t worry because you’re not the only one.
People are rarely prepared for unexpected costs which aren’t exactly unexpected. If you’ve done the math and you simply can’t afford your policy anymore, it’s time to see what you can do. It’s possible to reduce the cost of your home insurance.
If you’re looking to save money on home insurance, please continue reading for some tips that can help.
Looking to Save Money on Your Home Insurance?
The rates for home insurance have increased over the years. However, you can still save money on your home insurance with a little help. To find out what to do if you can’t afford your home insurance premiums any longer, use some of these tips below.
Increase the voluntary excess on your home insurance policy.
If you’re going through a tough time from a financial standpoint, you’re desperate to lower your costs. One thing you can do is to increase the voluntary excess on your home insurance policy.
When dealing with the voluntary excess:
- it represents the amount of money that you agree to pay if you make a claim before the insurance company takes action
- the insurer makes a deduction from the total and doesn’t pay the entire amount.
Since money is tight for you, you should raise the excess on your home insurance policy because you’ll end up paying cheaper premiums.
As a rule, insurance companies reduce the amount of money they charge for the policies if clients choose a higher voluntary excess. Why? Simply because they don’t have to pay too much money.
However, there is a catch.
In case you make a claim, you’re the one who has to cover the additional expenses. It’s therefore recommended to set a realistic amount of voluntary excess. If you’ve never ever had to make a claim and you’re certain that you won’t need to make a claim in the near future, go ahead and commit to paying a higher amount of money.
Shop around for more affordable home insurance
Switching homeowner’s insurance companies takes a great deal of time. However, you can save a lot of money in the process. Find more affordable home insurance. If your friends can’t recommend an insurance carrier, you’ve got no choice but to shop around. Review every aspect before signing with a new company.
- Actual costs versus your finance plan
- Liability coverage
- Special circumstances that can affect the insurance rates
- Coverage level
If you’re lucky enough, your current insurer will offer you a lower rate and you won’t have to switch insurance companies. Nobody wants to lose a good client. Your loyalty can be rewarded with lower home insurance premiums. Maybe you won’t get the best rate possible, but you won’t be saddled with financial burdens.
When insuring your home, make sure not to overvalue the property. Valuation refers to how much someone would pay for the house. If nobody is willing to pay the price you had in mind, that just means that the property is overvalued. Now, why does this even matter?
The answer is simple:
If the insurance value, as well as the premium, isn’t accurate, you’ll end up digging deep into your pocket.
Reduce your flooding risk
The state of Florida faces a higher risk of flooding as compared to all the others. Numerous people are at risk and it’s all due to the rising sea level. The melting ice from the North and South Poles, in addition to the slowing of the Gulf Stream, are the main culprits.
Needless to say, flood damage is the reason why people file claims for Florida home insurance. If you take the necessary steps to reduce your flooding risk, you can lower your home insurance premiums. So, put in place a plan to protect your property from a natural disaster.
If the flood happens to be caused by a storm, you’ll have to deal with more than a couple of inches of water.
Check the building for entry points:
- basement windows
- dryer vents
As well as any other entry points.
Right now, it’s not within your financial means to elevate the house above flood levels. No, but here’s what you can do: install a sewer backflow valve. This will prevent water backup, so your family and your belongings will be safe if a natural disaster strikes. Keep in mind that you’re not doing this solely to lower your home insurance costs. You’re doing it to make sure that you’re protected in the worst of times.
Bundle auto and home insurance
In case you didn’t know, some companies that provide home insurance coverage offer significant discounts to clients that choose to buy one or more policies for them. So, why don’t you bundle auto and home insurance? Even if you don’t have a great deal of cash right now, make an effort. This way, you’ll save a lot of money in the long run. Who knows? Maybe you’ll enjoy other perks too? Be careful when you’re in the market for auto insurance. There are times when bundling is more expensive than buying separate coverage.
Make sure that the combined price is actually lower than acquiring coverage from different companies. The last thing you want is to end up paying more.
Consider the benefits of combining insurance policies, such as:
- the financial benefits (easier to manage the policies)
- you don’t waste time trying to memorize login credentials
- you don’t need to communicate with two insurers at the same time
There is no room for confusion, so as to say. Yet again, ensure that combining all your insurance policies with one company is the best move. Don’t overpay.
Looking to Save Money On Your Home Insurance? It’s Time to Take Action…
All in all, homeowner’s insurance isn’t dreadfully expensive. Maybe not, but if you’re in a very bad financial situation, it may be hard to keep up with paying the premiums. The tips presented above are sure to help you lower your costs. If they don’t provide the expected results, think about eliminating unnecessary coverage.
Do you know what is worth paying for with your home insurance policy?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.