NerdWallet: How to lower your homeowners insurance bill, and still stay covered

by | Oct 25, 2022 | Stock Market

This article is reprinted by permission from NerdWallet. Home insurance costs are rising. Supply chain issues due to the pandemic, labor shortages in the construction industry, rising inflation, and increasing natural disasters are contributing factors. And experts say this trend will continue. However, you have ways to ensure you’re paying the lowest rate possible while remaining fully covered. Here are some tips to save on homeowners insurance.

Don’t drop coverage to save money Dropping coverage to lower your premium may save you some cash in the short term. But if disaster strikes, you’ll be left footing the bill when it’s time to rebuild your home and replace lost belongings. Home insurance protects you from paying out of pocket for expensive costs. “What you’re insuring your home for is the cost to repair and rebuild,” says Carole Walker of Denver, executive director of the Rocky Mountain Insurance Information Association. “It is one of the most important financial investments you’re going to make.” You should also avoid dropping other necessary policies beyond homeowners insurance, such as a flood insurance policy from the National Flood Insurance Program. Instead, try getting quotes from private insurers. You may find a cheaper option. Walker also recommends homeowners communicate regularly with their insurance agent or company. Provide as much detail as possible about your home and belongings to ensure you’re always fully covered. Plus: Opportunistic real-estate hunters targeting Florida towns that just weeks ago were in Hurricane Ian’s pathIncrease your deductible Raising your deductible, the amount you pay when you file a claim, is a guaranteed way to lower your homeowners insurance premium. But only do this if you know you’ll have enough cash on hand to cover the higher amount if something happens. If you’re unsure of whether to increase your deductible, consider how much you’d be comfortable paying in a situation where you might want to file …

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