I HATE House Insurance Shopping But Love Saving 2021

Do you hate house insurance shopping, but love saving money?

I really hate house insurance shopping but I love saving money so I make it a priority. Now that we are into 2021 and the new pandemic era, we must learn to save money on everything.

Why do I hate house insurance shopping, because it is nerve racking. If you are like many American you are not familiar with most of the house insurance terms, definitions and some of the other language.

But, if you are like me and you want to live a frugal lifestyle, you can learn some smart strategies for saving on house insurance. The reality is that it is okay to hate insurance shopping, but saving is a priority for everyone in 2021.

Affiliate Marketing Disclaimer: This article contains Amazon affiliate links, thank you for helping me out. Financial Disclaimer: This article contains strategies that I use personally, but should not be taken as a prescribed method of use for you.

Table of Content

Determine What You Know And What You Want To Know
Use Your House Insurance Knowledge To Maximize Your 2021 Savings
What Have You learned: Add Up Your House Insurance Savings
Good Credit reports Bring Good Insurance Savings
Decide How You Will Pay For Your House Insurance
Actions And Recommendation

What do you know about house insurance shopping

Most importantly you should know something about what you want before you make the first call. Knowing what you want will help you reduce the hate you have for house insurance shopping. Also, it can save you the headache of numerous unwanted phone calls from the wrong insurance company and irritating sales person.

Next, if you think you don’t know anything about your current policy, then get it out and start reviewing it with informational articles such as this one. The basic review will give you some insight and help you know what types of questions to ask when you decide to call for a quote. A good place to start with your investigation is by reviewing the basic coverage information.

Use Your House Insurance Knowledge to maximize your 2021 savings

2. Even if you hate shopping for discounts, use your knowledge to maximize your current discount offers. Review as much basic information as possible and use the discounts given for various reasons through the insurance company.

What is basic coverage and how can I save money on it? There are 8 different types of basic coverages. There is HO-1 which is a basic insurance. It is not used a lot. Next is HO-2 which is a broad insurance. It covers perils and seems to be a lot like HO-8. Then, there is HO-3. This policy covers everything except exclusions.

After that is HO-4, it is for renters. HO-5 is a comprehensive policy, it covers perils that include personal items. Next, is HO-6 for condos and HO-7 for mobile homes. Finally, HO-8 for older homes. My home is a basic HO-8 which means it is more than 40 years old.

The HO-8 policy I have covers the dwelling, personal property, liability and a loss by perils (damages). I also added roof surface as an extended coverage because we get a lot of hail and snow in Michigan.

Normally it would cost around $3000. per year to insure a house as old as mine. The policy tells me that it would cost $317,000. to rebuild my house from the ground, and the insurance is based off of the rebuild price. However, with the discounts, (the roof is a big discount) we pay $832. per year.

Each of the basic HO Plans offer some type of discount. So the bottom line is to check out the policies and find the discounts. We were able to find over $2000. for our home.

What Have you Learned: Add Up Your House Insurance Savings

3. What can you use from what you learned? As you review your current policy and if you don’t want to change policies, look for offers that you have found, and can use to increase the value of your home and decrease the price of your house insurance.

I reviewed my house insurance policy and found that we received 8 discounts, but the discount that is offered to seniors was not one of them. I made a note (using a red ink pen) of the current discounts and those that I think we should qualify to get on our insurance policy.

What type of discounts did the house insurance company allow?

Nowadays outside security devices like the Ring doorbell 3, Arlo and high tech security cameras seem to be the “go-to” for protection. Besides that, these devices gave me a $26. discount for my protective devices. Also, remember that deadbolts, alarm systems, smoke detectors, carbon monoxide detectors and fire extinguishers are also items that bring a few dollars back into your pocket.

My biggest two discounts came through a multiple-policy discount. The multiple policy is the combination of auto and home insurance. This discount added up to $347.00. In addition to the multi-policy, I received a discount of $1524. because I have never filed a claim.

Also make sure that you tell your agent about the discounts and ask why you do not qualify if the current policy is not giving you the discount automatically.

Good Credit Reports bring Good Insurance Savings

4. Don’t forget the power of a good credit report. Although the credit report only gives about a $300. discount, it does a lot more when it is used to determine your house insurance premium.

Accordingly, insurance companies use the credit report to determine or predict insurance losses. Also, the credit report is so effective, that it is used to keep costs low and competitive.

Paying and Saving on House Insurance in 2021

5. Decide how you will pay for your house insurance.

Affording your home insurance should be part of what you consider when you purchase your home. However, if you decide to leave it out of your house payment, developing a budgeting system to ensure that it is paid either monthly or yearly is a necessity.

Should you decide to pay by the month, you could setup an automatic withdrawal to put the money into a special savings account. Nonetheless, the monthly house insurance savings account is a great way to save the money to cover the insurance even if you pay it once per year.

If you are a frugal individual or just want to save a few extra dollars on your house insurance you can save up to $150.00 by paying everything at once with a credit card. Then payoff the card. This double payment action could upfront you the money saved by using a one-time-pay and credit card cash back reward.

House Insurance Shopping Recommendations for Insurance Savings

Learn Before You Buy: Determine what you already know. If you don’t know anything about house insurance, read a couple of the articles in the resources to get a better understanding of how house insurance works.

Use Google: Once you speak with an insurance agent and have a new policy, look at the perils link above and make sure you are covered for the perils that occur often in the region where you live.

Ask Questions: If you have an existing policy ask your agent why you did not qualify for certain discounts. Also, ask if there are any discounts available to review for the future.

Credit Score Inquiry: Ask how your credit score is used to determine the cost of your insurance premium.

Bundle your insurance: If you can bundle with auto, then bundle. It is one of the biggest discounts.

Budget Your Insurance Payments: Budget your house insurance payment and save it in a separate savings accounts on a monthly basis. But, pay the insurance once per year. Use your credit card rewards plan to pay the policy. Then take the house insurance savings pay the credit card, and use the cash back profit to jump start your next years insurance payment.

Conclusion

We began with the question and statement about hating to shop for house insurance, but loving the ability to save money on house insurance in 2021. Next, we asked what you already know about house insurance. We suggested that you increase what you already know and use that information to ask questions.

Once you have your questions written down, review your policy again. This time look at the current discounts and make sure that you are getting every discount available. Then you should keep an eye on your credit score because of its power.

Next we stated some recommendations of how you can hate house insurance shopping but love your savings power in 2021. Finally, we stated that you want to find a way to always pay your house insurance on-time.

Resources

Home Insurance Specials http://www.aa.homeinsurancespecials.com/zip/?utm_source=Bing&utm_account=HW1&utm_campaign=B_Homez-HIS_AAA&utm_adgroup=insurance-pmm&utm_keyword=%2Baaa%20%2Bhomeowners%20%2Binsurance&device=c&devicemodel=&network=o&placement=&macthtype=b&adposition=&creative=&msclkid=f01401785ad3126f72056128d25c9068#quote

How to find cheap homeowners insurance in 2021 https://www.thesimpledollar.com/insurance/home/cheap-home-insurance/

Types of homeowner insurance https://www.thesimpledollar.com/insurance/home/types-of-home-insurance/