Save on Homeowners Insurance
Those of us who have homes cannot go without homeowner�s insurance. While our economy is struggling, the housing market isn�t. Prices are going up every day, and absolutely no one would want to lose the investment they put into their homes. Besides insurance for your home, most insurance policies cover items within your homes as well � for an added cost.
Since there are so many companies offering home insurance, you can find a policy that is right for you without overpaying. However, like everything else, you need to do your research. We can give you some pointers on what to think about and look for when searching, but ultimately you�ll need to make sure that you�re doing everything you can to keep your premiums low. Once you find a company that fits with your needs, following are ways to save on homeowners insurance:
- Increase your deductible. Deductibles are the amount that you must pay after a loss before the insurance company starts paying. The lower your deductible is, the more the insurance company will need to pay. Deductibles average between $250 and $500. If you increase your deductible to $500 or $1000, the insurance company will likely decrease your premium (payments). While you are taking the risk that you will need to pay more money in case of emergency, you will most likely make up for that in lower payments.
- Bulk buy. See if you can find a company that offers both car and homeowner�s insurance. If you chose that company for both, very often you will get a discount.
- Forget the land. Unless you have a precious begonia bush that you need to keep an eye on for fear that the begonia-burglar will take it, don�t insure your land. Insure the house only. Most people don�t realize this and include the land in the policy. Insurance companies don�t always clue you in to this and include the land as part of the value of your home. Not including the land will save you money.
- Increase home security. Most companies will offer a discount of at least 6% for smoke detectors, burglar alarms, or dead-bold locks. Some companies will decrease this even further if you have an alarm system that is connected to the police and fire stations.
- Toss the butts. As if you needed another reason to stop smoking� �Smoking accidents� account for more than 23,000 house fires per year. Some companies don�t want to take this added risk and will give you a discount if no one in the house smokes.
- Find a company yourself. Unless you are high-risk (live in a high-crime area, an area that floods regularly, tornadoland, etc), try to find �direct carriers� � insurance carriers who do not use agents. These are companies that sell directly to the customer without the added cost of agents in the middle. American Express, Amica, and USAA are examples. Since these are less expensive insurers, they have the ability to pick and chose their insured. They are extremely selective. Using the direct carriers for car or life insurance as well (if offered) might put you higher on their list.
- Claim-proof your home. Make your home as safe as possible to not only encourage insurance companies to give you a lower premium but to keep that premium low. The fewer claims you submit, the lower your cost will be. Keep your home as safe as possible � put a fence around the pool, get rid of Grandma�s wood-burning stove, and find a better place for Killer Brutus. Believe it or not, when investigators inspect your home for potential problems when insuring you, if they feel that your pet is threatening, they will increase the cost of your policy.
- Retire or hire live-in help. Sounds good, doesn�t it? Well, insurance companies think it does too. The more you�re around, the less chance there is of a break-in, a fire breaking out, or pipes bursting and flooding your basement. Ok, maybe that was a little cheeky, but you get the point.
A lot to think about, but all important things. The web is a great place to do some research, but you should also ask around. Ask your neighbors who they use. Most likely, your home is similar in value to theirs and they might be able to point you in the right direction.
Lastly, check your policy every year. You don�t want to pay to insure $500 pearls that you chose to give to your daughter last Christmas. Likewise, the beautiful antique you found should be added to the policy if it is worth more than your deductible. More research to do, but certainly well worth it.
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