How Insurance Can Impact Your Family’s Finances

| January 29, 2013
Insurance Can Impact Your Family's Finances

Insurance Can Impact Your Family’s Finances

Homeowner’s insurance policies can be costly, but the reality is that they are an absolute necessity when it comes to families. A homeowner’s policy will cover losses in the event of a natural catastrophe, as well as fire and theft, and without it, you could be subject to a substantial loss of money. Additionally, growing families must pay for health insurance and auto policies that increase as each child reaches the legal driving age. These costs can feel overwhelming, especially in households with a drop in income due to the recent economy. If you are the head of the household and are looking for ways to save money on your insurance policies while still maintaining adequate coverage, here are a few tips that may be helpful.

Bundle Your Insurance Policies

Bundling insurance policies has become quite common over the past few years, and it can allow for substantial savings, especially for large families. There are a variety of bundling options to choose from as well. By bundling your home and auto insurance policies, you can achieve savings of up to 20 percent on your auto premium, and by bundling auto and life insurance policies, you can save up to 5 percent on your auto premium. Purchasing additional liability through an umbrella policy can also provide up to a 5 percent discount on homeowner’s, renter’s, or condominium insurance.

Raise Your Current Deductible

If you are currently paying a deductible of $500 or less on your homeowner’s policy, you can save yourself up to 25 percent on your premiums by doubling this amount. This allows for substantial savings in the long run, and you will still hold a reliable homeowner’s policy that will cover your home in the event of an unforeseen catastrophe.

Disaster-Proof Your Home

By taking steps to make your home more disaster-resistant, you may be able to lower your premium costs. If you live in earthquake territory, you can retrofit your home for added stability, and if your area is prone to storms and hurricanes, adding storm shutters and sturdy roofing materials will allow for extra protection of your home during a bad storm. If your home is older, you may also be interested in updating your wiring and plumbing pipes, as this will greatly lower the risk of potential fires and interior flooding. By updating your home, you may be able to cut down premium costs, and your current homeowner’s insurance agent will be happy to advise on all available discounts.

Save On Insurance, Remain Protected

Learning of the various discounts that may already be available to you as well as available discounts for bundling or updating your policies, you will be able to save a significant amount of money on your home and auto insurance coverage. Every penny adds up, especially in today’s up and down economy, and it is always a better idea to seek out available discounts from your current insurance agents than opting for a low cost policy that may not allow you the proper coverage. By working with your agent and making a few simple changes, you can save money and have the peace of mind that your home and family are properly insured.

Stephen Catalano is an insurance consultant. He enjoys spreading his knowledge through blogging on various personal finance blogs. Obtain home insurance quotes by HomeInsurance.com, visit their site.

How Insurance Can Impact Your Family’s Finances

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