Coverage Tips
For most of us the largest investments we will ever make is our home and its belongings. Home owners insurance is necessary to protect those investments from unforeseen circumstances such as storms, theft, fire, and other events outlined in your insurance policy. Often times Mortgage companies and Lenders will not finance your home without proof of coverage. Homeowners insurance can be fairly expensive. The following tips should help you determine what you can do to help lower your coverage costs and receive the best coverage available for your particular needs.
1) Fire Alarm – Having a fire alarm in the home may not only save your life but can save you money too.
2) Burglar Alarm – By installing a home burglar alarm with a service or directly tied to the police department can save you money towards your premium and make your home safer as an added bonus.
3) Multiple Policies – Check with your health or auto insurance company to see if they offer Homeowners coverage. Often times Insurance companies will offer discounts to people that hold multiple policies with them.
4) Deductibles – Like auto insurance a home’s premium can be lowered by agreeing to a higher deductible. Keep in mind that having a higher deductible may mean some smaller claims would not be worth to pursue.
5) Senior discount – Some companies offer a discount to policyholders that exceed a certain age. Insurance companies feel that older retired people are less of a risk because they spend more time in the home maintaining it and would be able to spot hazards such as fire more quickly.
6) Changes – You should periodically review your existing policy to see if any recent changes you have made to your home may be a factor in lowering the cost of your premium. If you’ve had something of value previously insured that you no longer have it would be something you’d want to discuss with your agent. Another example would be if you’ve had a pool removed. Some insurance companies view having a pool as a risk and is factored into your premium.
7) Group Coverage – Some associations have special discounts given to its members by the insurance company. You should inquire with your association or group about such discounts.
Credit Check – Some companies use your credit rating as a factor when determining your premium. If your credit is not good you should look into companies that don’t take credit ratings into consideration.
9) Preferred Customer – If you’ve been insured with the same company for a number of years they may offer you a discount on your premium.
Ensuring you have the right home owners insurance coverage for your homes specific needs at the lowest cost may take some research and diligence on your part, but is well worth the effort in the long term.