Published on Wednesday, 01 December 2010 09:16
Home Owner Insurance
10 Ways You Can Save Money
When you need a home owner insurance policy, you want to save money any way you possibly can. After all, anytime you save a dollar, you get to keep that dollar.
There’s no reason to give away every bit of your hard earned cash.
Do Some Research On The Different Companies - When you’re in the market for home owner insurance, you should always get many quotes to compare, as it can save you a lot of money.
If you don’t know where to start, check out the National Association of Insurance Commissioners, as the agency will have information to assist you in choosing an insurance company in the state that you live in. It’ll also have information on any complaints the business has had. The website for them is www.naic.org.
Now, states will make available the typical rates big named insurers charge and they’ll also have information on how often there are complaints about the company. If you want the best rates for your home owner insurance, then use the Direct Insure Online free comparison services to obtain multiple quotes in a matter of minutes.
Don’t forget to use consumer guides, online insurance quote services and insurance agents to find your best rate quote. With many quotes, you can sift through the ones that offer the lowest prices possible.
Of course, price isn’t the only factor to consider when it comes to home owner insurance. You want your insurance company to give you quality service for the price you pay; this includes getting assistance when you must file a claim. To find out what kind of service quality each company has, be sure to talk with each insurer to get a reading on the kind of service they provide.
You also need to check on the company’s stability financially. Use either www.standardandpoors.com or www.ambest.com websites to learn about these companies financial standpoint. You should also read consumer magazines to give you an idea.
Consider Raising The Deductible - When you’re trying to save money on your home owner insurance, you should consider raising the deductible, which is the amount of money you are subjected to pay before the insurance will throw in the remaining balance. The higher the deductible is, the less you’ll be paying on your premiums. Most insurers have a standard $500 that’s automatically placed on a policy. However, if you’re able to, raise the deductible to $1,000; you’ll be saving about 25 percent.
Don’t Include Land Your House Sits On - When you’re getting an insurance quote, you should understand that the land that your home sits upon will not be at risk for the normal things a home owner insurance policy covers such as fire, wind storms, theft, etc. It will always be there, regardless of what happens to your home. When you’re getting quotes, avoid mentioning it because you’ll end up paying more.
Get Both Your Auto and Home Owner Insurance From The Same Company - If you want to save more money, consider getting both your automobile and home owner insurance from the same company, as you can save up to 15 percent on your premium. However, be sure you’re going to save money going this route rather than getting several policies from different companies.
Protect Your Home From Disasters - Talk with your insurance agent or representative on what you can do to make your home resistant to disasters. You can save money on your rate by adding to your home materials that can keep the home from becoming damaged. You can also modernize your home systems that will also reduce how much you pay each month.
Secure Your Home - Home owner insurance companies will offer a five percent discount for homeowners who have a burglar alarm, smoke detector and/or deadbolt locks. However, if you’ve got a sophisticated home security system, you can save up to 20 percent on your premium. A typical system such as this will run you around $40 a month, which is what you can save on your home owner insurance. Consider checking out Protect America to protect you, your belongings and your home.
Look For Other Discounts - Each insurance company will offer discounts. However, the amount of discounts and the kind of discount is not the same across the board. For instance, retired folks tend to stay at home much more than working folks. This means they’re more likely not to be burglarized and can notice when a fire is first happening. They also have more time to maintain their home. If you’re 55 years of age or older, you can qualify for a discount, usually no more than 10 percent. Thus, you’ll need to do some shopping around for the discounts to see what you can get for a better deal.
Have Good Credit - If you want to bring down your insurance rates, then you need to have good credit. More and more insurance companies are using your credit information to give homeowners a premium quote. In the majority of states, the insurer must let you know of negative marks that your report is hit with that will result in the higher rate. You should also be sure to verify this information. If you want to get a better score, then consider obtaining a free credit repair kit to help you do this.
Become A Long-Time Customer - If you’ve stayed with the same insurer for several years, you may get a special discount for being with them for so long. Some will drop the premiums by five percent if you’ve been with the company for five years. Some insurers will drop them by 10 percent for remaining a policyholder for more than six years. Of course, you’ll still want to compare your policy to other policies to ensure that you’re getting a “true discount”.
Buy A Home Means To Factor In The Insurance Too - When you’re on the market for a new home, you must consider its location to certain safety features and the home’s equipment along with what kind of home owner insurance premium you’ll be hit with. If you wisely pick your home, you could get a six to 20 percent discount on your rate.
Possible Must-Have Policies Not Generally Covered By Everyday Home Owner Insurance
Be mindful of the fact that both flood insurance and earthquake damage insurance are typically not covered by the run of the mill home owner insurance policy.
If you leave an area known to flood, you’ll need to purchase a flood insurance policy, which generally runs around $375. Use the Federal Emergency Management Agent website to find out more information on flood insurance (www.FloodSmart.gov).
You’ll also need to get an earthquake policy is you live in a region that’s it by earthquakes. For people living in the state of California, check out the California Earthquake Authority to get the coverage you need (www.earthquakeauthority.com).
Talk to the insurance agent or representative regarding questions you have about possessions that are covered or not covered. Don’t be afraid to shop around to get the best home owner insurance quote for your budget and needs.
While you want the lowest home owner insurance premium, you still want to have a policy that protects you in the event that you need it.