Owning a home, especially an older one, comes with unavoidable expenses, and home insurance is one of those things. You may not like paying your premiums each month, but if something were to happen to your home, at least you know the damages would be covered to some extent.
Chances are that if you have an older home, your premiums will be higher than someone who has a newer home. Although this may be the case, there are some things you can do to help lower your insurance costs.
Here are the six best ways on how to lower insurance for older homes each month:
1. Shop Around for the Best Insurance Policy
Don’t just go with the first insurance company you can think of or the one that your best friend recommends. In order to save money and lower your insurance premiums on your older home, you should use a home insurance broker to find the best policy.
It’s now easier than ever to gather insurance quotes. There are some websites out there that once you input your information, it will recommend some insurance companies for you and give you an estimate on the cost. Once you have this list, you can then call a few of them to see which one is the better option. Mention that you have an older home and see if the insurance company can recommend any money-saving tips.
Look for an insurance company that has a strong rating. You will know right away that these companies are reputable and that you’ll be in good hands if you decide to go with them.
2. Lookout for Insurance Discounts
Looking out for discounts should be a priority if you want to lower your insurance for older homes. If you have an older home and you’re paying a bit more on your premiums because of it, look for other ways you can save money. A great way to do this is to lookout for any discounts you may be eligible for. You can discuss these discounts with the insurance agents you speak with while trying to get quotes, as well as once you’ve chosen a company.
There are a variety of discounts out there that may apply to you. Some of these discounts include bundling your home insurance with your car insurance, any updates you’ve done to your roofing or windows, including any energy-efficient upgrades.
Be sure to mention all the repair work you’ve done to your home as you never know what can get you even more of a discount.
3. Know What Your Home Insurance Policy Covers
One of the best things you can do for yourself is to become an educated homeowner. This means not blindly trusting that your insurance company has sold you the right policy. When you get your insurance renewal each year, go through the document, paying special attention to your coverage summary and exclusions page.
Have questions about your policy? Don’t be afraid to call your insurance agent and have them go over the policy with you. While you’re doing this, you can also make sure that you’re getting all of the applicable discounts and that you’re not paying for coverage that you don’t need.
4. Have a Home Alarm System Installed
One of the main things your home insurance insures against is theft. That being said, once you take precautions against theft, like having an alarm system installed, you will start to see savings on your insurance premiums. Now that the odds of you suffering a break-in have decreased, your insurance company will see you as less of a risk and less likely to file a claim.
Not only is it good to have an alarm system installed to save money, but it will also give you peace of mind.
5. Increase Your Insurance Deductible
Another way you can lower your insurance premiums on older homes is to increase your deductible. Even increasing it by $500 or $1,000 could save you as much as 25%.
Although this is an attractive method to saving money on your premiums, you will want to ensure that your deductible is not higher than what you can pay out of pocket.
Pro Tip: Avoid making small claims on your home insurance to help keep your premiums from increasing.
6. Evaluate Your Insurance Coverage Each Year
A lot can change from one year to the next, so make sure that you evaluate your insurance coverage each year. You may have upgraded to energy-efficient windows a few months ago and failed to mention it to your insurance company. By evaluating your coverage each year, this allows you to get on the phone with your insurance agent to make sure you are taking advantage of all applicable discounts and savings.
At the end of the day, even if you have an older home, there are still ways that you can save money on your insurance costs. Take these six tips into account and you’ll be sure to save a buck or two.
