Now is a great time to assess your homeowner’s insurance coverage. Being underinsured relative to the value of your home could result in financial ruin—especially if your loss requires that you completely rebuild.
Too much coverage is a problem also. It’s a mistake to assume you need coverage equal to your home’s fair market value because that value includes the land on which your structure resides. Because of this, in most cases, your home’s fair market value will be higher than the cost to replace it. Here are some other cost-saving tips to consider:
Bundle coverage. Purchasing homeowners and auto coverage from the same company can provide you with a solid discount. This is also called a multi-policy or companion discount; and it makes managing policies easier, cuts down on paperwork, and reduces the inconvenience of having to communicate with multiple insurance companies about multiple policies.
Raise your deductible. While there are many ways to save money on homeowner’s insurance, an immediate solution is to raise your deductible.Higher deductibles equal lower premiums. However, this could leave you vulnerable in case of a claim. If you're a responsible and financially secure homeowner, going this route could pay off.
Make home improvements. Replacing old electrical and plumbing systems, and adding a security system, can provide insurance savings. Dead-bolting doors is another good idea. It’s much harder for a thief to get through a deadbolt. And don’t just put them on the front and back doors. Include deadbolts on all of external doorways.
You can reach Dan's Laguna Niguel office at (949) 363-7100 or visit DanRickabus.com