10 ways to find cheaper home insurance

Looking for cheap home contents insurance? Well, if the price sounds too good to believe, here are a few red flags when making a buying decision.

1. Be warned if you are offered The Texas Fair Plan. This is a government-funded bare-bones policy, which usually does not cover falling objects and sudden water runoff, to name a few. To be eligible for the policy, you must first have been refused cover by three other companies. Sure, the price may be right, but you’re sacrificing coverage. And if this kind of home policy isn’t explained to you by the real estate agent, beware!

2. Home reconstruction coverage is not just for rebuilding or repairing your home at current labor and material costs, excluding any rebates a builder may get, but also for debris removal, including the slab and driveway. Review the reconstruction calculation with your broker.

3. Often the lender will ask you to take out a home insurance policy with home coverage equal to or greater than the loan. However, the policy will only cover the cost of rebuilding or repair and it is quite possible that the cost will not be enough to cover the loan. The bank would never be paid directly from the insurance company to pay off the loan. Moreover, the land will always be there and is often the most expensive part of the home purchase. So discuss this problem with your lender.

4. Try bundling your policies for a discount. However, this is not always cheaper. To compare.

5. A roof less than 5 years old often gives you a discount.

6. A burglar and fire alarm controlled by an outside source can earn you a discount. Often the proof required is an invoice from the service you are using. Just because you have the alarm doesn’t get you a discount, but having a working service is what gets you the discount.

7. If you have a wood-frame home, upgrading to hardiboard, brick, or stucco can save you a discount.

8. If your home is 35 years old or older, replacing 100% of the wiring and plumbing could get you a discount, or at least more companies to get quotes from to compare. Evidence is often required. A copy of the invoice and payment made will work, or a letter from the approved contractor will be taken as proof.

9. Depending on your profession, there are sometimes professional discounts. The proof is a copy of your diploma, license or certification.

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10. Always ask about ways to lower your premium or other discounts available.