10 Ways To Save On
Homeowners Insurance
1. Raise Your Deductible - Save Up To
25% Denham Springs Real Estate, Livingston Parish, Baton
Rouge
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 Free MLS Home Search at http://marylandrealestatehomes.com
About the author:
Robert is a writer in the Washington DC area who
specializes in money saving tips. More homeowner tips at
http://marylandrealestatehomes.com
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Denham Springs, LA
70726
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Phone:
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