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10 Ways to Save Money On Your Home Insurance
Monday July 25th, 2016 Texas Insurance Services

10 Ways to Save Money On Your Home Insurance

Posted in Home Insurance

10 Ways to Save Money On Your Home Insurance

  1. One Insurer, Multiple Policies — Do you have an automobile insurance policy? If so, is it with the same insurance company that provides your homeowners insurance? If the answer’s no, you’re paying too much — for both policies. Almost every insurance company that sells home insurance wants its policyholders to also buy auto insurance from them. Usually, these discounts are at least 10% — and some insurers apply the discounts to both the auto and the homeowners/renters policy.
  2. Raise Your Deductible — The deductible is the amount you pay before insurance kicks in if you have a claim. The higher your deductible, the less you pay for your policy. Of course, you risk more out-of-pocket expense if you have a claim, but you save on your premium each and every year.
  3. 10 Ways to Save Money On Your Home InsuranceNew Is Better — Insurers really like newer homes. That’s because it’s less likely something will go wrong with the electrical, heating and plumbing systems. In addition, the structure itself is in better shape. Insurers offer discounts of as much as 8% to 15% if your residence is new.
  4. Location, Location, Location — Where do you live? If your home is near a fire station, you will pay less for your home insurance. If your neighborhood has fire hydrants you will pay less. If you live in an area that is prone to flooding, your lender may require you to buy a flood insurance policy. That will likely cost you hundreds of dollars a year. If you live near the coast, you will pay more due to the risk of hurricane. Where you live will impact the cost of your home policy.
  5. Insure the House, Not the Land — Nobody is going to steal your land. Fire and high winds won’t “destroy” it. And your home policy doesn’t cover your land anyway. So, don’t include the value of your land when deciding how much insurance you need. Have your agent run a replacement cost estimate to determine what it will cost to rebuild your home – and other structures – if they’re destroyed. The market value of your land doesn’t matter. If you include the value of the land, you’re paying too much.
  6. Don’t Insure What You Don’t Have – Your home policy includes an automatic protection limit for your personal property. This amount is adjustable. If you don’t need all that protection you can lower it to save some money.
  7. Being Safe Pays You Back — Smoke detectors, burglar alarms and deadbolt locks are usually worth discounts of at least 5% on your home policy. You may get even bigger discounts, 15% to 20%, if you install a sophisticated sprinkler system or an alarm system that rings at the police station or a security company
  8. Shop around – The quickest and easiest way to shop for home insurance is to contact an independent insurance agency in your state. These agencies represent many major insurance carriers rather than just one. Not only can they shop your insurance now, but they can shop your insurance at each renewal to make sure you are always getting the best deal.
  9. Monitor Your Automatic Inflation Adjustment – Virtually every home policy includes an automatic inflation adjustment every year. This means the company automatically increases your Dwelling Limit every year. The idea is to keep up with the rising costs of rebuilding your home and make sure your insurance will completely rebuild your home. That’s a good thing! But over time this automatic inflation adjustment can get way too high.
  10. Good Credit = Lower Rates – Most companies these days use your credit history as part of their pricing structure. People with better credit will pay far less for their insurance in most cases. So, not only is improving your credit rating a good idea by itself, it may also reduce the cost of your insurance.