Moving into a new home is always exciting, but it can also increase financial stress. Along with mortgage payments, closing costs, and relocation expenses, you also have to budget for new homeowners insurance. The good news is there are ways to cut your premiums and get the best rate possible for your new abode. Follow these tips to minimize costs when insuring your new dwelling.
Review Current Coverage
The first step is to review your existing policy well before the move. Make sure you have sufficient dwelling and contents coverage for the new property. If your current limits won’t fully cover the new home and possessions, start the process of increasing them now.
You’ll also want to tally up high value items like jewelry, art, and electronics and make sure they are properly insured. These special categories often have caps on standard policies, so you may need endorsements for adequate coverage.
Shop Around
Don’t just automatically renew your current policy in the new home. Moving is the perfect time to shop around for lower premiums. Get quotes from several insurers to make sure you’re getting the most competitive price.
Independent agents who work with multiple carriers can be helpful to compare rates. Online quote tools also streamline the process of finding the lowest premiums.
Consider New Discounts
A new home may qualify you for discounts your current home doesn’t. For example, you may get breaks for having smoke detectors, an alarm system, or deadbolts installed. If your new home has upgrades like impact-resistant siding, a new roof, or ample fire hydrants in the area, make sure to inquire about possible savings.
Also ask about new customer discounts with companies you’ve never insured with before. Just switching providers could chop 10% or more from your costs in some cases.
Raise Deductibles
If your finances allow, accepting a higher deductible like $1,000 to $2,500 can significantly reduce premiums. Just be prepared to pay more out of pocket for small claims. Avoid raising deductibles so high your finances can’t absorb the impact if you do have a loss.
Seek Bundling Opportunities
Adding in auto, valuable collections, or umbrella coverage with your home policy can lead to bundling savings. Make sure to ask any insurer providing other policies if they offer a multi-line discount.
Review Annually
Get in the habit of reviewing pricing every year at renewal time. Quality insurers will decrease your premium if you’ve been claims-free. Comparison shopping regularly is key to finding the lowest prices as new discount programs are introduced.
Conclusion
With a little homework, you can optimize savings on your new home without sacrificing protection. Follow these tips and don’t get complacent – a proactive approach is key to keeping costs down year after year. Maintaining adequate coverage on your biggest asset brings long-term peace of mind.
