Reduce Your Homeowners Insurance Costs
November 7th, 2012
November 7th, 2012
Over the past few years, the cost of your homeowners insurance has increased significantly, because of the rise in claims due tornado, tropical storm and hurricane damage. Plus the price you pay may depend on the insurance company you buy your policy from. Here are some things you can do to reduce the cost of your homeowners insurance.
Get insurance quotes from several companies – either by checking rates online, or calling or meeting with an insurance agent. But realize, if you’ve been with the same insurance company for several years, you may be receiving a long-term policy discount. Typically, if you’ve been with the same company for 3 to 5 years, your premium is reduced by 5%, and if it’s been 6 or more years, you’re likely paying 10% less.
Raise Your Deductible
If you experience damage or a loss, your deductible is the amount of money you pay out of pocket before your insurance company starts to pay on a claim. Generally, the higher your deductible, the more money you’ll save. Most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1000, you could save up to 25% more on your premiums. Also, check to see if your policy has a separate deductible for certain types of damage, such as hail, wind, or earthquake. You may want to consider raising this deductible as well.
Buy Your Home and Auto Policies from the Same Insurance Company
Many companies offer a discount of 5% to 15% if you buy your homeowners, auto and liability coverage from the same company. However, make sure this combined rate is lower than buying each policy separately from different companies.
Reduce the Likelihood of a Claim
By making your home more resistant to damage and potential claims, you can take steps to reduce the likelihood of having a future claim. Some things you may want to consider: adding storm shutters, removing dead trees, building a fence around a swimming pool, reinforcing your roof, or modernizing your home’s heating, plumbing and electrical systems.
Improve Your Home’s Security
Some insurance companies offer at least a 5% discount for installing safety and security features in your home. Talk to your insurance agent to see if you would qualify for a special discount by adding deadbolt locks, security systems, window and door alarms, smoke detectors, CO2 detectors, sprinkler systems and other safety and security features.
Ask about Other Discounts
Insurance companies offer a variety of discounts depending upon the state. So, ask your insurance agent about other discounts you may qualify for. For example, if you’re 55 years old or older, you may qualify for an additional 10% discount.
Maintain a Good Credit History
Nowadays, insurance companies are often using your credit information to determine the cost of your policy. Therefore, it’s important to establish and maintain a solid credit record by paying your bills on time, not having more credit than you need, and keeping your credit balances as low as possible.
Review Your Policy Coverage Annually
Every year, you should read through your policy to determine if any changes are needed. If you’ve purchased extra insurance on items you no longer have or they’re no longer worth what they used to be worth, you’ll want to talk to your agent about reducing or canceling this coverage.
By following these steps, you’ll be able to save substantially on your homeowners insurance.
If you’re in the process of purchasing a new home, contact Grandview Lending at 866.690.4920. We will work with you to find an affordable loan option that meets your specific needs.
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