Get quotes from different types of insurance companies. Some sell through their own agencies with the same name as the insurance company. Others sell through independent agents who offer policies from several insurance companies, while others don’t use agents. You can even find insurers who sell directly to consumers over the phone or through the Internet.
Consider going with a higher deductible. The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. The higher your deductible, the more money you save on your premium. A deductible of $500 or $1,000 can save you as much as 25 percent.
If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters. For instance, if you live near the East Coast, you may have a separate windstorm deductible. In a state vulnerable to hail storms, a separate deductible for hail or tornado-prone area will have a deductible for that type of threat.
Buy your home and auto policies from the same insurer. Most companies that sell homeowner’s insurance also sell auto and umbrella liability insurance. (An umbrella liability policy will give you extra liability coverage.) Some insurance companies will reduce your premium by 5 to 15 percent if you buy two or more insurance policies from them. But make certain this combined price is lower than buying coverages from different companies.
Make your home more disaster resistant. Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You may be able to save on premiums by adding storm shutters and shatterproof glass, reinforcing your roof, or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing, and electrical systems to reduce the risk of fire and water damage.
Remember, you’re insuring the house, not the land, so you’ll need to subtract the value of the land when you calculate how much homeowner’s insurance to go with. Too many homeowners insure their home for the appraised value, which includes the land as well as the improvements. Insurance agents should point this out, but many times they don’t, because it increases your premiums as well as their profits. Check out discounts for home security devices. You can usually get discounts of at least 5 percent for smoke detectors, burglar alarms, or dead-bolt locks. Some companies may cut your premiums by as much as 15 percent or 20 percent if you install a sprinkler system and a fire or burglar alarm that rings at a monitoring station. These systems aren’t cheap, and not every system qualifies for a discount. Before you buy one do the math. Find out what kind your insurer recommends, how much the device would cost, and how much you’d save on premiums. Ask what other discounts are available. Companies don’t all offer the same discounts or the same amount of discounts in all states. Ask your agent or company representative about discounts available to you. For example, if you’re at least 55 years old and retired, you may qualify for a discount of up to 10 percent. Of if you’ve completely modernized your plumbing or electrical system recently, you may get a price break.
Check out group coverage through your employer to see if a homeowner’s policy is available and is a better deal. Also, professional, alumni, and business groups may offer insurance packages at a reduced price.
If you’ve been insured with the same company for several years, you may receive a discount for being a long-term policyholder. Some insurers will reduce premiums by 5 percent if you stay with them for three to five years, and by 10 percent if you’re a policyholder for six years or more. Still, rates and policies can and do change, so compare every couple of years to make sure you’re getting the best deal possible. Review policy limits and the value of your possessions annually. You want your policy to cover any major purchases or additions to your home. But you don’t want to spend money for coverage you don’t need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you’ll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners’ policies).
Consider going with a higher deductible. The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. The higher your deductible, the more money you save on your premium. A deductible of $500 or $1,000 can save you as much as 25 percent.
If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters. For instance, if you live near the East Coast, you may have a separate windstorm deductible. In a state vulnerable to hail storms, a separate deductible for hail or tornado-prone area will have a deductible for that type of threat.
Buy your home and auto policies from the same insurer. Most companies that sell homeowner’s insurance also sell auto and umbrella liability insurance. (An umbrella liability policy will give you extra liability coverage.) Some insurance companies will reduce your premium by 5 to 15 percent if you buy two or more insurance policies from them. But make certain this combined price is lower than buying coverages from different companies.
Make your home more disaster resistant. Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You may be able to save on premiums by adding storm shutters and shatterproof glass, reinforcing your roof, or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing, and electrical systems to reduce the risk of fire and water damage.
Remember, you’re insuring the house, not the land, so you’ll need to subtract the value of the land when you calculate how much homeowner’s insurance to go with. Too many homeowners insure their home for the appraised value, which includes the land as well as the improvements. Insurance agents should point this out, but many times they don’t, because it increases your premiums as well as their profits. Check out discounts for home security devices. You can usually get discounts of at least 5 percent for smoke detectors, burglar alarms, or dead-bolt locks. Some companies may cut your premiums by as much as 15 percent or 20 percent if you install a sprinkler system and a fire or burglar alarm that rings at a monitoring station. These systems aren’t cheap, and not every system qualifies for a discount. Before you buy one do the math. Find out what kind your insurer recommends, how much the device would cost, and how much you’d save on premiums. Ask what other discounts are available. Companies don’t all offer the same discounts or the same amount of discounts in all states. Ask your agent or company representative about discounts available to you. For example, if you’re at least 55 years old and retired, you may qualify for a discount of up to 10 percent. Of if you’ve completely modernized your plumbing or electrical system recently, you may get a price break.
Check out group coverage through your employer to see if a homeowner’s policy is available and is a better deal. Also, professional, alumni, and business groups may offer insurance packages at a reduced price.
If you’ve been insured with the same company for several years, you may receive a discount for being a long-term policyholder. Some insurers will reduce premiums by 5 percent if you stay with them for three to five years, and by 10 percent if you’re a policyholder for six years or more. Still, rates and policies can and do change, so compare every couple of years to make sure you’re getting the best deal possible. Review policy limits and the value of your possessions annually. You want your policy to cover any major purchases or additions to your home. But you don’t want to spend money for coverage you don’t need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you’ll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners’ policies).
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