How to Influence a Lower Homeowner’s Insurance

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Very surprisingly, many homeowners have no idea that if they were to shop around they could easily save a significant amount of money from one insurance carrier to the next. But there is an even greater hidden secret that could end up saving you hundreds of dollars more each year (if not more) and it is very simple.

It turns out that with just a few simple and easy “tricks” you can keep a lot more money in your pocket. Here are some great ways to help bring your home insurance premium payment down:

Update Your Home to Current Safety Code
One of the easiest (and inexpensive) things to do is to change out the old plastic dryer vent accordion pipe with a metal one. It takes minutes to do and as soon as your insurance finds out you’ve made the change that extra fire safety precaution will bring down your insurance rate.

Similarly, install updated fire and smoke detectors, put in carbon monoxide detectors and monitor chemical and gas levels in and around the home so that if needed you can have mitigation systems installed.

Lower Your Deductibles
How often does an insurance claim really happen? Take a look at your past track record and if you’re like most of us, chances are you don’t have a lot of insurance claims on the property. By simply increasing your deductible amount you will make your premium go down. At the same time it will help you to take extra precautions around the home so that you won’t have to file a claim and pay a large deductible.

Conduct a Mini-Audit of Your Home
Get in touch with your insurance agent and ask him or her to help you conduct a mini-audit. Take a look at all the existing policies, riders and coverage items you have. In addition, go through the home and identify other opportunities (like the dryer vent) that will lower your insurance rate.

Avoid Excessive Claims and Check With Your Agent First
A common mistake made by some homeowners is to file a claim, sometimes repeatedly, for issues that tend to raise red flags within in the insurance industry. For example, claims that deal with flooding, water-related issues or dog bites – all have the tendency to make your premiums go up. If possible, try to avoid making these claims and talk to your agent ahead of time to make sure they agree filing the claim is a good idea.
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There are other ways to chip away at your homeowner’s insurance premium, such as checking to see if they provide discounts for local college Alumni or being a member of some associations.  Call your insurance agent for more ideas.

As always, we are right here ready for you when you are ready to buy your next home. We look forward to helping make your real estate goals come true.

How to Influence a Lower Homeowner’s Insurance Premium

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Unless you live in a very volatile area, chances are your homeowner’s insurance premiums are fairly standard. But one thing that many people do not realize is that they can actually have an impact on the amount they are charged for insurance.

There are several factors involved in a homeowner’s insurance premium calculation and if you play your cards right you may be able to end up with sizable savings. Homes that are located in areas that exhibit frequent and volatile storms or acts of nature on a regular basis – such as earthquake zones, hurricane prone areas and tornado belts - will obviously see larger premiums. And seasonal weather changes like hail or windstorms will also have an impact on the rate you will pay for insurance on your property. But for the most part, there are ways to save on insurance.  Here are four factors that you can control that will help you to save money.

Cut Down Those Claims

The single biggest impact you can have on your insurance premium rates is the number of claims you file. This is largely applicable to those claims you have control over. Acts of nature will impact your rates less than deliberate or reckless occurrences such as a fire that occurs during a cookout. Be mindful of the number of claims you file and it will keep your insurance premiums down.

Spruce Up Your Credit

Like with everything else, insurance companies also want to know that you are responsible in handling your finances – in fact, they rate homeowners (and others) with an insurance score that is similar to a credit score. An insurance score takes into consideration your credit, claims history, property location and value. It is essential to get and keep good credit. Paying bills on time, avoiding late payments and demonstrating solid financial responsibility translates to lower premiums because insurance companies know they can count on you.

Choose Location Wisely

One factor that many people do not realize is how close the property is to the local fire department. The further away from a fire department the home is located the higher your insurance premium will be. In fact, your insurance premium can go as high as 50% to 60% higher than if you lived closer. The reason is the added risk of total loss since it would take them that much longer to get to your location.

Go For Higher Deductibles

At one point, deductibles for homeowner’s insurance were lower than they typically are today. Where they were once only $250 or $500 per claim, deductibles for most policies are now $1,000 with some people opting for even higher amounts – as much as $5,000. There are two reasons for the higher deductibles; not only do they serve as a deterrent from smaller claims but also homeowners receive a break on their premium.

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If you would like more information about how you can positively impact the cost of your homeowner’s insurance – or for any other property and real estate related inquiries, please contact us today!