Keys to Saving On Homeowners Insurance
Consider taking some steps to make yourself a better risk and save money.
Install safety & security devices. You can often save up to 15 percent on you premium with deadbolt locks, fire extinguishers, smoke alarms, burglar alarms and fire alarms that alert your local police and fire stations. Check with your agent to see if your insurance company has specific requirements to qualify.
Increase the deductible on your homeowners policy. Increasing your out-of-pocket payment from $250 to $500 or even $1,000 can save you money on your premium and it will discourage you from making small claims, which could put you at risk for being non-renewed.
Check into a multi-policy discount. Some companies offer a price break for having more than one type of policy with the same company.
Maintain good credit. Many companies provide discounts or consider good credit as one of the factors when selling new policies, so it can really pay off to manage your personal finances.
Invest in hail and fire resistive roofing products. Your roof is the most vulnerable part of your home and many companies consider the roofing materials into the premium you are charged. Depending on where you live, some companies charge a percentage, rather than a dollar deductible or surcharge on a roof made out of high-risk materials, like wood shingles or shakes.
It pays to shop around for insurance coverage. Keep in mind that the cheapest policy is not necessarily the best. Selecting a company that provides good customer service and one that fits your personal needs is critical, especially when it comes time to file a claim.
Home Buyer Checklist
Check on insurance early. When buying a home, the sooner you check with an insurance company or agency to price a policy and find out if you can insure that property, the smoother the process will be.
Check the claims-filing history of properties you are selling and buying.
- Get a copy of your own loss history report, such as a CLUE report from ChoicePoint or an A-PLUS report from Insurance Services Office (ISO).
- Ask the seller to provide a copy of the home's loss history report (called a CLUE or A-Plus Report) with the disclosure statements. This can alert you to any damage that may have occurred to that property. Depending on your insurance company, the loss history of your potential home may affect your insurance.
Make sure you buy the amount of insurance you need. Take the time to properly insure your home. Make sure that you have enough coverage to:
- Rebuild the house if it is destroyed by fire or another insured disaster.
- Replace everything in it.
- Protect your assets if someone is injured on your property.
Consider a higher deductible. If you can afford a higher out-of-pocket deductible, it will save you in the short-term on your insurance premium and also discourage you in the long-term from making small claims that could put your insurance at risk for non-renewal.
Ask about extra coverage.
- Replacement cost coverage for possessions.
- Extended or guaranteed replacement cost coverage for the structure.
- Building code upgrades.
- Sewer and drain back-ups.
- Inflation-guard.
- Umbrella coverage if you have a lot of assets to protect or the property has high- risk features, such as a pool.
- Special riders for jewelry, collectibles and expensive items.