Consumer guides, insurance agencies, and online quote services can also provide information. The National Association of Insurance Commissioners (www.naic.org) can provide information about homeowner insurance in your state and any complaints about the companies you are interested in. And remember, the lowest price is not always the best. Consider the quality of service that the insurer provides.
Raising your deductible (the amount of money you contribute if there is a need to file a claim). The higher your deductible, the more you can save on the premiums. Insurance companies recommend that you select a deductible that is at least $500, but if you can increase the deductible to $1000, you may save as much as 25%.
Do not include the amount you paid for the land on your property when determining what the value of rebuilding costs. If you include this figure, you will pay a higher premium than necessary.
Some companies that offer homeowner insurance will give you a discount if you buy two or more policies from them (for example: homeowners insurance and auto insurance). Just be sure that the combined price is lower than buying each policy at two separate companies.
You may also receive a discount when you make your home more resistant. Ask your insurance agent what you can do to help your home stand up to disasters. You may be able to save by adding storm shutters, reinforcing your roof by purchasing higher quality and stronger roofing materials. Also, consider modernizing your plumbing, heating and electrical systems to reduce the risk of water damage or fire. Having a fire extinguisher and smoke alarm can give you a discount as well.
Discounts of at least 5% are usually available if you have a burglar alarm or install dead-bolts on your doors. Other discounts on your homeowner insurance may be available. If you are at least 55, you may get a 10% discount. Employer and professional association administer group insurance may offer the best deal if you qualify.
If you have had coverage with an insurance company for several years, regardless of what type of policy you have, you may receive an additional discount for staying with the same insurer. Some companies offer a 5% reduction in the premium of your homeowner insurance if you are with them for three to five years. If you remain with them for more than six years, you could save 10%
On a yearly basis, determine whether the additional items you have covered are worth what they originally were. You can update your policy to reflect the changes. When purchasing your home, consider the cost of homeowners insurance. Now that you are armed with some of the basic discount information, you can seek out a house that will help you pay less insurance. A house close to a fire hydrant or fire department may lower the costs as well. A brick home is the most wind resistant. Look for homes that have electrical, plumbing and heating systems that are less than ten years old.
Speak with your insurance agent for more information on this subject.
By R. S. Wagner