When it comes to lowering your monthly mortgage payment, emphasis is often put on refinancing for lower interest rates. While this could be a good option for you, many homeowners overlook a simple way to pay less every month: choosing the right homeowner’s insurance.
Examine Your Policy
Homeowner’s insurance policies aren’t one size fits all. It’s important to understand the nuances of different policy options so you can be sure that you’ve chosen the most comprehensive plan tailored to your specific needs. If you’re currently in the market to buy a home, or if you haven’t closely examined your homeowner’s insurance policy for some time, now is the perfect opportunity to make sure your policy is working for you.
Prices can vary widely on policies, so it’s important to shop around. You can either do the research yourself, or work with an agency that deals with several different companies. At Long & Foster Insurance, we advocate for our clients. As an independent agency, we get proposals from the nation’s top insurance providers and help our clients pick the right protection for their homes.
There are a couple of easy ways to save money. One of the easiest is bundling. Oftentimes, if you purchase additional coverage, such as auto insurance, you can save money on both policies. Investing in a home security system can also save you money in the long run by lowering your premiums. A third way to save money on your homeowner’s insurance is to choose a higher deductible. In this instance, you will have to pay more out-of-pocket if you do have to make a claim, but your yearly cost will be lower.
The Bottom Line
If you save money on your homeowner’s insurance, that will have an immediate effect on your mortgage payment. For instance, if you lower your premium by just $300 per year, it will knock $25 per month off of your mortgage. In addition to saving money, you can also make your life easier. If you bundle your various insurance policies through an agency, you can have an experienced agent explain the nuances of different policies and customize your coverage options from the ground up. You’ll have a single point of contact for all of your insurance needs and can rest easy knowing that you’ve protected your home and your investment.