Home ownership is the American dream. However buying a home of your own requires a major financial commitment. This means saving for a down payment, finding the right mortgage lender and the most important responsibility, finding affordable home protection. In this blog post, Gregg S. Marcus, a Long Island Insurance Executive lists some tips for first-time home-buyers to save money on their first homeowner’s insurance policy.
Raise Your Deductible
A deductible is the amount of money you have to pay toward a loss before your insurance company will start to pay the claim, according to the terms of your policy. The higher the deductible, the less money your insurance premiums will be! Currently, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25% off your premium. Depending on where you live, there may be separate deductibles for certain kinds of damage. For example, if you live in an earthquake-prone area, your earthquake policy has its own deductible.
Rebuilding Costs Differ Than Total Home Value
The land that your home is built on isn’t at risk from theft, windstorm, fire and the other perils covered in your homeowner’s policy. Make sure not to include the land’s value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should be paying.
Improve Your Home Security Before Moving In
Some insurers offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that alerts the police, fire or other monitoring stations. These systems can be expensive and not every system qualifies for a discount. Before you purchase such a system, find out what kind your insurer recommends, how much the device would cost and how much you’d save on premiums.
Purchase All Policies From Same Insurer
Many insurance companies give you a discount if you have multiple policies with them. If you have a homeowner’s policy with one company, it will make more sense to get your automotive insurance with the same insurer and save money on both policies.
Don’t forget to also ask for discounts on your policy. There are plenty of discounts you may qualify for. If you are purchasing your first home in Nassau County or Suffolk County on Long Island in New York and are researching homeowner’s insurance companies, contact Gregg S. Marcus for a quote today.
