10 Ways To Save On Homeonwers Insurance
1. Raise Your Deductible - Save Up To 25%
Deductibles are the amount of money you have to pay toward a
loss before your insurance company starts to pay a claim,
according to the terms of your policy. The higher your
deductible, the more money you can save on your premiums.
Nowadays, most insurance companies recommend a deductible of at
least $500. If you can afford to raise your deductible to
$1,000, you may save as much as 25 percent. Remember, if you
live in a disaster-prone area, your insurance policy may have a
separate deductible for certain kinds of damage. If you live
near the coast in the East, you may have a separate windstorm
deductible; if you live in a state vulnerable to hail storms,
you may have a separate deductible for hail; and if you live in
an earthquake-prone area, your earthquake policy has a
deductible.
2. Don't confuse what you paid for your house with rebuilding
costs
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 will pay a higher premium than
you should.
3. Buy your home and auto policies from the same insurer
Some companies that sell homeowners, auto and liability coverage
will take 5 to 15 percent off your premium if you buy two or
more policies from them. But make certain this combined price is
lower than buying the different coverages from different
companies.
4. Make your home more disaster resistant
Find out from your insurance agent or company representative
what steps you can take to make your home more resistant to
windstorms and other natural disasters. You may be able to save
on your premiums by adding storm shutters, reinforcing your roof
or buying stronger roofing materials. Older homes can be
retrofitted to make them better able to withstand earthquakes.
In addition, consider modernizing your heating, plumbing and
electrical systems to reduce the risk of fire and water damage.
5. Improve your 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, fire or other monitoring
stations. These systems aren't cheap and not every system
qualifies for a discount. Before you buy such a system, find out
what kind your insurer recommends, how much the device would
cost and how much you'd save on premiums.
6. Seek out other discounts
Companies offer several types of discounts, but they don't all
offer the same discount or the same amount of discount in all
states. For example, since retired people stay at home more than
working people they are less likely to be burglarized and may
spot fires sooner, too. Retired people also have more time for
maintaining their homes. If you're at least 55 years old and
retired, you may qualify for a discount of up to 10 percent at
some companies. Some employers and professional associations
administer group insurance programs that may offer a better deal
than you can get elsewhere.
7. Maintain a good credit record
Establishing a solid credit history can cut your insurance
costs. Insurers are increasingly using credit information to
price homeowners insurance policies. In most states, your
insurer must advise you of any adverse action, such as a higher
rate, at which time you should verify the accuracy of the
information on which the insurer relied. To protect your credit
standing, pay your bills on time, don't obtain more credit than
you need and keep your credit balances as low as possible. Check
your credit record on a regular basis and have any errors
corrected promptly so that your record remains accurate.
8. Stay with the same insurer
If you've kept your coverage with a company for several years,
you may receive a special discount for being a long-term
policyholder. Some insurers will reduce their premiums by 5
percent if you stay with them for three to five years and by 10
percent if you remain a policyholder for six years or more. But
make certain to periodically compare this price with that of
other policies.
9. Review the limits in your policy and the value of your
possessions at least once a year
You want your policy to cover any major purchases or additions
to your home. But you don't want to spend money for coverage you
don't need. If your five-year-old fur coat is no longer worth
the $5,000 you paid for it, you'll want to reduce or cancel your
floater (extra insurance for items whose full value is not
covered by standard homeowners policies such as expensive
jewelry, high-end computers and valuable art work) and pocket
the difference.
10. Look for private insurance if you are in a government plan
If you live in a high-risk area -- say, one that is especially
vulnerable to coastal storms, fires, or crime -- and have been
buying your homeowners insurance through a government plan, you
should check with an insurance agent or company representative
or contact your state department of insurance for the names of
companies that might be interested in your business. You may
find that there are steps you can take that would allow you to
buy insurance at a lower price in the private market.
MD, DC, VA, PA Search for homes free at
http://marylandrealestatehomes.com