How to Beat the Rising Price of Homeowners Insurance

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about How to Save Money on Homeowners Insurance and other Home Insurance topics.

How can I Beat the Rising Price of Homeowners Insurance?

How to Beat the Rising Price of Homeowners Insurance

If you are like most Americans, every little bit helps; learn how to beat the rising price of homeowners insurance with these free homeowners insurance quote tips designed to provide the coverage you need without the high cost.

  1. Calculate the cost savings of increasing the deductible. Every homeowners insurance policy has a deductible — the amount you are required to pay out of pocket — that must be met before the insurance provider pays the remaining balance of the claim. Typical deductibles range from $250 to $2,500 and generally speaking, the lower the deductible, the higher the cost of homeowners insurance. Find out how much money you can save by increasing the deductible of your homeowners insurance policy.
  2. Once you find out how much money you can save by increasing the deductible of your homeowners policy, set aside the savings into a bank account. For example, if you currently have a $250 deductible but increase it to $1,000 in order to reduce your homeowners policy by $300 per year, then open a special savings account to put the $300 savings into it. Do this each year and soon you will have more than enough to pay the additional $700 deductible plus money left over.
  3. Make a little money! The extra deductible will more than pay for itself in just over two years, but why stop there? Keep putting the savings from your insurance premiums into a savings account or even interest-earning Treasury Bills until you can increase the deductible to $2,000. That will lower the rate of homeowners insurance premiums even more, plus lower the chance of having to make a claim that could result in higher insurance premiums later.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Home Insurance Tip Site? Request a Tip Now!


Guru Spotlight
Barbara Gibson