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Insurance
Saving money on your homeowner insurance!
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2 of 5 Insurance
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Did you know that smoking accounts for more than 23,000
residential fires a year and that some insurance companies offer
reduced premiums for a house that’s smoke-free?
Or that buying two or more policies, such as home and auto,
from the same insurance company may save you 5 to 15 percent off
your premium?
Yes, little known facts such as these are out there and knowing
where to find them can save you money on insurance premiums letting
you keep your hard earned cash in your pocket where it belongs!
Naturally, friends, family, the phone book and Internet are some
sources you can use to find great rates for homeowners insurance but
keep in mind that price alone shouldn’t be the bottom line.
Talk to a variety of insurers and find out what kind of
personal services they offer in addition to competitive pricing.
Check the financial ratings of the companies with AM Best or
Standard and Poor's.
Raise your deductibles and
save up to 37%!
The dollar amount you choose for your deductible is the amount of
money you pay for any loss before your insurance company’s
coverage kicks in. Deductibles on most homeowner’s policies start
at $250 but increase your deductible to $ 500 and you could save up
to 12 percent! Immediately!
Raising the amount of your deductible to $1,000 will save you
up to 24 percent, $2,500 will save you up to 30 percent and a
deductible of $5,000 can save you up to 37
percent!
Check on discounts for new
homes
When you buy a home, consider its cost in terms of insurance.
Insurers may offer you a discount of 8 to 15 percent if your
house is new since a new home's electrical, heating and plumbing
systems and overall structure are likely to be in better shape than
those of an older house.
Insure the home, not the
land
The land under your house isn't at risk from theft, windstorm,
fire and the other perils covered in your homeowners policy. So
don't include its value in deciding how much homeowners insurance to
buy. If you do, you'll pay a higher premium than you should.
Invest in home security
You can usually get discounts of at least 5 percent for a smoke
detector, burglar alarm, or dead-bolt locks. Some companies offer to
cut your premium by as much as 15 or 20 percent if you install a
sophisticated sprinkler system and a fire and burglar alarm that
rings at the police station or other monitoring facility. Since not
every system qualifies for the discount, be sure to check with your
insurer what they recommend
Senior rates
Retired people are more apt to stay at home thus spot fires
sooner than working people and tend to have more time for home
maintenance. If you're at least 55 years old and retired, you may
qualify for a discount of up to 10 percent at some companies.
Group discounts
Some insurance carriers offer a discount on homeowners insurance
to alumni and business associations.
Check with your association’s director
to set up an insurance package with an insurance company that
includes a discount for association members.
Member’s discounts
Loyalty is often rewarded by insurance companies if you've kept
your coverage with them for several years and you may receive
special consideration from yours. Your premiums may be reduced by 5
percent for staying with the same company for 3 to 5 years and by as
much as 10 percent if you remain a policyholder for 6 years or more.
Update your policy
Make an annual check to compare your insurance policy limits to
the value of your possessions especially after having made any major
purchases or additions to your home. At the same time, you want to
ensure you are not spending money for coverage you don't need.
Choose private insurance
People who live in high-risk areas that are especially
vulnerable to coastal storms, fires, or crime may find that buying
insurance in the private market would be more cost effective than
buying their homeowners insurance through a government plan.
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