However, people anywhere around the world are experiencing greater financial constraints due to the current health crisis. Many people are getting lesser wages right now due to the gloomy economic conditions. Homeowners like you would love to keep their home insurance but, admittedly, some will of them might not have sufficient funds to get covered.
That is why we are sharing some tips on how to save money on your home insurance:
Your deductible is the amount of money that you need to pay from your pocket before your home insurance kicks in. Most policyholders will go for the home insurance policy with a lower deductible. The common misconception is that you are saving money with a lower deductible.
However, in the long run, you need to shell out more money with a lower deductible because you are going to pay a higher premium. The amount of insurance premium that you need to pay correlates with your deductible. The lower your deductible, the higher the premium and vice versa.
For example, if you increased your deductible from $500 to $1,000, data showed that it could potentially decrease your insurance premium by as much as 25%.
Don’t Over Insure Your Home
Most insurance companies might have advised you about the risks of getting under-insured with your home insurance. But most policyholders will fail to realize that they can also get over insured with their insurance policy. In other words, you are paying more premium for coverage that your house does not actually need.
You need to review your insurance policy at least once a year to check which coverage no longer applies to your house. You might discover that there are personal belongings that are still insured in your current home insurance that are no longer in your possession. You could talk to your agent to strike it out of your policy, so you no longer must pay it.
It is good to examine your coverage limit to see if you are under or over-insured so you can adjust your coverage limit to a level appropriate for your house. Your coverage limit dictates the amount of premium that you need to pay. If you have a higher amount of coverage, it can raise the insurance premium you need to pay.
Nowadays, almost everyone wants to find a way to reduce their expenses. However, your home insurance need not suffer from belt-tightening measures. You can talk to your insurance provider to discuss how to lower your home insurance cost.
At Valencia Insurance Group, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (772) 344-8899. You can also request a free quote by CLICKING HERE.