Take time to do research and compare
You might have to spend a little time to shop around but it is definitely worth it. With a couple of hours, you can save a good amount of money if you do your research and compare. There are so many ways to shop around for homeowners insurance. Don’t hesitate to ask around, contact the state insurance department or look at the Yellow Pages. You can also visit the website of National Association of Insurance Commissioners (NAIC) to know more information about the insurer you are eying on. From the NAIC’s website you would also know if there are complaints filed on the local insurer from their other clients and customers.
Other than that, you should also look at the background of the company, the insurance agent that you’ll be dealing with, and their insurance quote services. Read more about the consumer guides to know your rights and if you are entitled to any discounts as well. By doing this, you will know about the price ranges and get to choose from a wide array of companies that offers the lowest price. However, you should not only base your decision on the price alone. The insurance company must also cater the quality service along with the fair price as well. More importantly, you should get that quality service by the time that you are already filing for a claim. If possible, ask for feedback from their current and past customers. That is why it is very important to talk to your insurer on what kind of service they could offer and how they could help in lowering your homeowners insurance cost.
You might also want to consider checking for the stability of the company. By the time that you have narrowed down your choices, it would be easier for you to choose which company offers the best services and the best quotes.
Don’t include unnecessary values
The land that is beneath your whole house is not affected by perils such as fire, storm, and theft. This may be included in your homeowners policy. However, there is no need to include the value of the land when you think about the cost of the insurance. If you do this, you will just increase the insurance premium rather than having it the other way around.
Increase your deductible
According to the insurance policy terms, the deductibles are the cost that you have to pay to the insurance company prior to filing the claim. When you give a higher deductible, you can save a lot on your insurance premiums. More often than not, insurance companies today advise their clients to give $500 or more for their deductible. And if you can, give $1,000 for the deductible if you want to save 25 percent on your insurance premiums. Of course, this depends on where you are located. If you live in a location where a lot of storms and other natural catastrophes happen, it is recommended that you give a higher deductible.
Get your car and home insurance from the same provider
There are a lot of companies that offer various kinds of insurance such as liability, auto, and homeowners. If you get all these policies from the same company, you can have as much as 15 percent discount on your premium. But you still have to check if the discounted price that they offer is still lower compared to the price if you would get your homeowners insurance from other companies.
Adding more security to your home
If you install devices that would keep your home safe, you can also get at least 5 percent discount on your premiums. Some of the security systems that you can add are dead-bolt locks, smoke detector, and burglar alarm. There are even some companies that offer 20 percent discount on premiums if you install more expensive security systems such as automatic sprinklers in case of fire and a burglar system that immediately calls the police. But you have to make sure first if the insurance company considers the system before you buy it since not all of these are qualified. Think also about the price of the system as well if it is really worth it.
As much as possible, have a disaster resistant home
Ask your insurance agent about the things that you could do to make your home resistant to the most common natural disasters in your location. If your house is prone to windstorms, you might use stronger roof materials or put up storm shutters instead. You can also make your house to be retrofitted so it would not easily be destroyed when earthquake comes. You might also want to install better plumbing, electrical, and heating systems so that your home will not be at risk of water and fire damages.
Have a clean credit record
You could also have a discounted premium if you have a good credit record. Every detail on your credit information matters and it could affect your insurance costs. There are a lot of states were an insurance agent would tell you the details how you can avail insurance discounts. It’s your job to verify all these directly from the company or other agencies handling the insurance companies. Meanwhile, as for your credit record you should always pay your bills on or before due date if you are planning to get an insurance. Check your credit record from time to time to maintain a clean and accurate record.
Be a loyal client to your insurance company
Those who are in the same insurance company for a long time are usually entitled to a special discount. There are some companies that would give 5 percent discount if their clients would stay for 3 to 5 years. But there are also insurance companies that would give 10 percent discount to those who stay with them for more than 6 years.
Look for more discounts
Every company gives out different kinds of insurance discounts. However, not all states are entitled to all these discounts. At the same time, it also varies depending on the age of the client as well. Usually those who are already retired gets big discount since they only stay at home. They can prevent fires and burglaries faster compared to those who are working away from home. Moreover, they have more time to maintain the safety of their home. Thus, companies give them as much as 10 percent discount on their insurance premiums.
Always review your insurance policy and assess the value of your home
Surely, you do some renovations in your home every year. If so, you might want to add this to the coverage along with the rest of the house. However, you should be careful and not include the coverage that you really don’t need.
