7 Tips for Saving Money on Property Insurance
Posted on: 18 October 2019
Property insurance is important if you own a property and want to safeguard your investment. This type of coverage can help if your property encounters damage from vandals, fires or natural disasters as well as other situations. To keep costs as low as possible, keep these seven tips in mind.
1. Consider a High Deductible
Whether you're buying property insurance or any other type of coverage, you pay insurance premiums on a monthly basis or as scheduled by your insurance company. Then, if you make a claim on the policy, you also have to pay a deductible. In most cases, if you opt for a higher deductible, you receive lower premiums in return. However, you need to choose this option carefully to make sure your deductible isn't unmanageable.
2. Choose Dogs Carefully
Property insurance often covers expenses related to dog attacks, and as a result, your insurance agent takes dogs into account when determining your premiums. When buying dogs, look carefully at the breed and make sure your property insurance company doesn't charge more if you have certain breeds of dogs on your property.
3. Limit Commercial Activities
Some property insurance plans only cover residential activities. If you do business on the property, you typically need to get a commercial policy which tends to be more expensive. To avoid that, limit commercial activities on your property. That said, if you do run a business on that property, make sure you get the right type of policy or you risk not being covered in the event of an issue.
4. Explore Ways to Minimize Risks
Keep in mind that insurance companies set their rates based on the risk of making a claim. If you take steps to minimize risks, you may be able to lower your premiums. Some of the steps you may want to take include installing security systems, replacing insecure doors or windows, hiring security guards, putting in metal roofs to reduce fire risk, and adding fire suppression systems. Before making these changes, talk with your agent to ensure that you will receive lower premiums.
5. Drop Unnecessary Coverage
Every once in a while, look over your policy and make sure that you're not paying for any coverage that you don't need. Then, contact your agent and adjust your policy as desired.
6. Bundle with Other Insurance Policies
If you get property insurance from the same company as your vehicle insurance, business insurance, or any other policies, you may save money through bundling. Contact your agent to see if that's an option in your situation.
7. Do Some Comparison Shopping
Keep in mind that insurance is a consumer product, and insurance companies are competing for your business. Annually or any time you receive an increase in your premiums, take some time to do comparison shopping to find out if you can get a better deal from another company.
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