Your insurer decides what to charge you for house insurance based on many elements. Is your house equipped having a security system, smoke detectors, and deadbolt locks? If so, then you can save money because these items help make your house safer and more secure. Do you've an in-ground pool or perhaps a trampoline? If so, then you will pay higher premiums than a homeowner who doesn't.
You can also expect to pay more if you are located in a higher risk area, such as a coastline that is susceptible to storms and flooding.Your insurer will also wish to know if you strategy to use your house for any business purposes, or if you plan to rent all or part of the home, both of which can increase liability.
The price you pay for your home insurance can vary by hundreds of dollars, depending on the size of your house, its location, and the insurer you purchase your policy from. According to the Insurance Information Institute, here are 10 methods to save money on your home insurance policy:
Shop around. Prices vary from company to company, so it pays to go shopping. Get a minimum of three price quotes. You can call companies directly or access information on the Internet. Your state insurance department might also offer comparisons of prices charged by major insurers. You buy insurance to protect yourself financially and offer peace of mind, so it is essential to choose a company that is financially stable. Check the financial health of insurers with rating companies like A.M. Best and Regular & Poor's and consult consumer magazines.
Get quotes from various kinds of insurers. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who provide policies from a number of insurers. Others don't use agents. They sell straight to consumers more than the phone or via the Internet.
Raise your deductible. A deductible is the amount of money you have to pay toward a loss before your insurer starts to pay a claim. The higher your deductible, the more money you save on your premium. Consider a deductible of at least USD 500. If you can afford to raise it to USD 1000, you may save as much as 25 percent.
If you reside in a disaster-prone region, your insurance policy may have a separate deductible for damage from main disasters. If you reside close to the East Coast, you may have a separate windstorm deductible. If you reside in a state vulnerable to hail storms, you might have a separate deductible for hail. If you live in an earthquake-prone area, your earthquake policy has a deductible.
Purchase your house and auto policies from exactly the same insurer. Most companies that sell home insurance also sell auto and umbrella liability insurance. Some insurers will reduce your premium by 5 percent to 15 percent if you purchase two or more insurance policies from them. But make certain that this combined price is lower than buying coverage from different companies.
Make your house more disaster resistant. Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You might be in a position to save on your premiums by adding storm shutters and shatterproof glass, reinforcing your roof, or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, think about modernizing your heating, plumbing, and electrical systems to decrease the risk of fire and water damage.
Do not confuse what you paid for your house with rebuilding expenses. The land under your house isn't at risk from theft,windstorm, fire, and the other perils covered in your homeowner's policy. So do not include its value in deciding how much homeowner's insurance to buy. If you do, you will pay a greater premium than you should.
Ask about discounts for house security devices. You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some insurers may cut your premiums by as much as 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 purchase one, find out what kind your insurer recommends, how much the device would cost, and how much you'd save on premiums.
Seek out other discounts. Numerous companies provide discounts, but they do not all offer the same discount or the same amount of discount in all states. Ask your agent or company representative about discounts available to you. For instance, if you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. If you've completely modernized your plumbing or electrical system recently, some companies may also offer a price break.
See if you can get group coverage. Does your employer administer a group insurance program? Check to determine if a home insurance policy is obtainable and is really a better deal than you can find elsewhere. In addition, expert, alumni, and business groups may provide an insurance package at a reduced cost.
Stay with the exact same insurer. If you've been insured with the same company for a number of years, you may receive a discount for being a long-term policyholder. Some insurers will decrease premiums by 5 percent if you remain with them for 3 to five years and by 10 percent if you're a policyholder for six years or more. To ensure that you're getting a great deal, periodically compare this price with the prices of policies from other insurers.
Search for private insurance if you are in a government strategy. If you live in a high-risk region - one that is especially vulnerable to coastal storms, fires, or crime - and you've been buying your home insurance via a government strategy, find out from insurance agents or your state department of insurance which insurance companies might be interested in your business.You might find there are steps you can take that will allow you to buy insurance at a lower price in the private market.
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