Dare to Compare
Shop around for your home owners insurance. Compare the insurance policies and companies, what they offer, and their prices. When you compare prices, be sure you are making an “apples to apples” comparison, meaning you compare the price of insurance policies offering comparable coverage. When you compare policies, look at what they offer, coverage options, convenience and accessibility. Look at the companies offering the insurance and check their history. Make sure they are reputable companies with good records.
Get at least three insurance quotes to start your comparisons. The Internet is one easy starting point. Many Web sites offer instant quote services from various companies.
Loyalty Can Pay Off
Some insurance carriers offer discounts to their long-time customers. If you keep your insurance with the same company for three to five years, you could qualify for about a 5 percent discount. Check with your insurance provider for these discounts.
Another form of loyalty can qualify you for a discount on your home owners insurance. Some insurance companies will give you “bulk rate” discounts if you carry both auto and home owners policies with them.
Bulk up Your Home
You can receive discounts on your insurance if you make your home more secure or if you make it more resistant to disaster. Talk to your insurance agent about how much you could save on your insurance by installing a home security system to prevent burglary or new electrical wiring to prevent a fire. Balance out the cost of installing the new systems as well as the potential safety precautions for your own home with what you will save on your premium to make the decision on upgrades.
Have a High Deductible
Set your deductible on your insurance as high as possibly comfortable. The higher your deductible is, the lower your premium will be. This is because you will be responsible to pay for more of the damage in the incident of an accident before the insurance company has to start paying their part.
Also, see if you can pay your premium annually rather than biannually or monthly. You may be eligible for prepayment discounts on your insurance, or a discount on service fees.
Give It a Yearly Once-over
Check over your home owners insurance policy at least once every year to make sure you are covered for any new construction on your home or any new purchases. Also, be sure to document everything with photos or a video camera, or both. You may need to make changes to your insurance policy to have coverage for additions to your home or new possessions.
Additionally, if your oldest child and her $5,500 wardrobe move out, you want to take that coverage off your home owners insurance. Paying insurance on something you no longer own, or that has depreciated in value, is one of the major reasons for overpaying on home owners insurance.
Work with Your Agent
Ask for discounts. Your agent is there to help you. He or she may know of special discounts for which you are eligible, based on your family situation, age, status of your home, its structure, location, etc. It never hurts to ask.
By D. Blair Thompson