by Monica DeVore
Don’t miss savings opportunities when deciding upon your homeowner insurance policy. Depending on the insurance company, the price you pay can vary by hundreds of dollars per year. So, whether you are purchasing a new home or evaluating your current policy, review these key points to help you determine the best policy for you and your home.
As with any important purchase, ALWAYS SHOP AROUND. It may take some extra time, but it could save you a great deal of money. Get referrals from friends and family. Check consumer guides, online insurance quote services, and with different insurance agents. You can also check with the National Association of Insurance Carriers (NAIC.org) for information about agents and consumer complaints.
When getting quotes, I wouldn’t mention what you are currently paying or what other quotes you have gotten – simply tell them you are shopping around for the best price, service and coverage. I’ve found you obtain better quotes this way! Ask about their claim process? Price is important, but you’ll get a good idea of their service quality in how they respond to your inquiries.
Get a MULTI-POLICY discount. Give your auto insurer a call to see if they offer homeowner policies. Many insurance companies will offer a 5-15% discount if you buy two or more policies from them. I would still encourage you to do some research to see if the combined rate is less than having them with separate companies. Keep in mind, some companies offer loyalty discounts based upon the number of years you have coverage with them. If you’ve been with yours a while, see what impact a change would have long term.
More Miscellaneous DISCOUNTS. Some employers and professional associations administer group insurance programs. I found great savings through my college alumni association!
If you are retired, you may be eligible for some increased savings through entities like AARP. Companies feel that retired people tend to be home more, so less apt to be burglarized and have more time for maintaining their homes. So, if you’re 55 or older and retired, see if you qualify.
Raise your DEDUCTIBLE. Deductibles are the same as with health or auto insurance; it’s the amount you pay before your insurance starts to pay on a claim. The higher a deductible, the lower the premiums. You can save up to 25% just by doubling the typical $500 recommended to $1,000! Be sure to ask about things like hail (or ANY other) damage because some policies have separate deductibles.
Years ago I had a large hail damage claim. The storm occurred only a few days after closing and prior to moving the first box! Fortunately it was covered, but when I purchased the policy I had no idea to even ask! I was very lucky! They replaced all siding, roof and structural damage – claim process and service were exceptional also.
Make your home MORE SECURE on all fronts. Ask your agent if upgrades such as buying stronger roofing materials or modernizing your heating, plumbing or electrical systems can lower your premium. These improvements can minimize risks of weather damage and reduce risk of fire or water damage, too.
Installing smoke detectors (ALWAYS INSTALL!!) or dead-bolt locks can reward you with discounts. If you install fire or burglar alarm systems that notify monitoring stations, you can cut your premium as much as 20% – especially if you’ve got sprinkler systems as part of your package!
What you paid for your home is the NOT cost to REBUILD. Don’t include the value of the land under your home when determining how much homeowners insurance to purchase. If you do, you premiums will be higher than necessary.
Review the VALUE of your POSSESSIONS as least ONCE a YEAR. Know the dollar limits on your policy. If you’ve made large purchases such as electronics, jewelry or any upgrades on your home – NOTIFY your agent! You may need more coverage if the full value of any item isn’t covered in a standard policy.
Maintain GOOD CREDIT. Yes. Good credit can lower your insurance costs. Check your credit regularly and have errors corrected immediately. If receive a rate hike because of credit issues, request your agent notify you of the details.
When BUYING a HOME, remember these items can also impact PREMIUMS. A volunteer vs. a professional fire department. A brick home vs. siding. Flood zone designations – (Check FloodSmart.gov for more information.) Flood and earthquake damage are NOT covered on a standard policy. Both can be VERY expensive.
If you run a business from your home, make certain to have that discussion with your agent to make sure you have all the coverage you need. Not just coverage for the tangible items, but liability as well.
Knowing these key points, you can feel more confident in determining the best agent, carrier and homeowner’s insurance policy for you and your home. AND, hopefully, you’ll simultaneously catch some real savings for your next home project!!
