8 WAYS TO SAVE
ON YOUR HOMEOWNERS INSURANCE

8 Ways to Save $ on Homeowners 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 homeowners insurance wants its policyholders to also buy auto insurance from that company. These insurers offer so-called multi-policy discounts. 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. For example, if you have a $250 deductible and you file a claim for $1,000 in damage to your home, you pay the first $250 and your insurer pays the balance, $750. The higher the deductible you choose, the more you pay. Also, though, the higher deductible, the less you have to pay for your policy. Depending on the insurance company, you can save between 12% and 37% if you have a deductible of $500 to $5,000.

3. New 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 47% if your residence is new.

4. Location, Location, Location -- Where do you live and what is your home made of? If you’re in the Eastern United States, it’s better from an insurance perspective to have a brick or masonry residence because such a structure has a greater resistance to wind damage. By contrast, frame homes are better in the earthquake-prone West. The right structure in the right region can save you 5% to 15%. Further, if your home is near a fire station, you will pay less for homeowners insurance. If you live in an area that is prone to flooding, you may be required to buy a flood insurance policy, which costs about $400 a year. If you are not required to buy the coverage and still live in a flood-prone area, your homeowners policy will not provide coverage for losses arising from flooding.

5. Insure the House, Not the Land -- Nobody is going to steal your land. Fire and high winds won’t “destroy” it. As such, when deciding how much homeowners coverage to have, don’t include the value of the land, only the value of the house and any other buildings on the property. If you include the value of the land, you’re paying too much.

6. Don’t Insure What You Don’t Have -- Each year, you should review your policy to see what coverage you have for your possessions. If you have made a major purchase, you will want to increase your limits of coverage, but what if you sell something or some things? You don’t need as much coverage. Pay particular attention to items that are covered by endorsements or “floaters” to your policy, items such as jewelry and computer equipment.

7. Better Safe(r) Than Sorry -- Smoke detectors, burglar alarms and deadbolt locks are usually worth discounts of at least 5%. You can get even bigger discounts, 5% to 10%, if you install a sophisticated sprinkler system or an alarm system that rings at the police station or a security company. However, not all of these systems qualify for discounts. Before you install one, check with your insurer to find out what type of system qualifies for a discount and how much you would save on your premium if you installed the system.

8. Where There’s Smoke . . . -- There’s fire. Smoking (unattended cigarette butts, etc.) produces more than 23,000 residential fires in this country each year. That’s why insurers have discounts if all the residents in a home are nonsmokers.

Is Your Coverage Adequate?
I won’t kid you. There’s more to this insurance game than saving money. In fact, while it’s nice to lower your insurance costs, it’s probably even more important to make sure you, your loved ones and your assets are covered adequately. It’s not a pleasant thought, but insurance is about worst-case scenarios. It’s also about peace of mind, knowing that you have the worst-case scenarios covered. Remember the true cost of insurance is the Premium + Unpaid claims.

PS~ see the free report on homeowner’s coverage by clicking here.