A Guide to Cutting Costs on Your Homeowners Insurance
Written by Kristina Lee
Homeowners insurance is expensive: you can almost feel your coffers emptying as you think about it. So how do you slow that drainage? Keep reading.
Shop around! - Comparison-shopping is a great way to find the best deals, and to get the upper hand for negotiations. Once you know exactly what kind of policy and coverage you want or need, get multiple quotes from different companies.
Raise your deductible to lower your premium - if you think your risk of disaster striking is low, consider paying more in the event of a disaster, but less now.
Take precautions to avoid perils - smoke detectors, deadbolt locks, burglar alarms, fire alarms, more fire-retardant and water-proof roofs all help to protect your home from disasters that could threaten your house.
Keep your credit score and report in good standing! - Insurance agents are like creditors: they want to know what kind of person you are to determine how that affects them and their business. They often use credit reports and credit scores to assess your risk level, and determine your premium rate.
Use the Discounts available! Here is a list of those offered by one Allied Insurance policy:
Multiple Policy Discount (5%) - for if you have multiple policies, such as a homeowners, auto, and umbrella policy, all with that one company.
Protective Device - for having a burglar alarm, fire extinguisher, storm shutters, smoke alarm, monitoring system, or other disaster preventative device. This reduces the probably of damage and therefore minimizes the cost to the company.
Age of Insured Discount - the older you are, the more mature you are expected to be, and the less likely you are to be reckless or cause damages. Older people are also expected to take better care of their property. This is only good until a certain unknown age, as the elderly are not as likely to be able to maintain their dwelling as well.
Age of Construction Discount - Newer buildings are less likely to have something go wrong with it. Older buildings contain older electrical systems that may catch on fire, or water pipes may break, rot, corrode, cause a flood, or be made of poisonous materials like lead that require replacing.
Home Renovation Discount - Remodels to a house raise the chances of the home being up to code. Newer appliances are like new homes - they have a lower chance of damage. For example, new stoves have less grease build up, and thus a lower chance of catching fire.
Home Purchase Discount - For those who actually live in the house they own, rather than renting it out. People are known to take better care of their own belongings and home than a rental property or hotel.
Roof Surface Credit - for certain roof types that reduce disaster risk, such as those that are fire retardant or water proof. An example would be fire-prone wood shake vs a fire resistant tile.
Personal Status Discount (5%) - for being married or widowed.
Gated Community Discount - for those who live in a gated community, which has additional security, and thus reduces the threat of theft.
Claims Free Discount - for those who have never put in a claim, or have had few claims. These people are statistically "better clients" and "safer people" to insure. Thus, they reduce the cost to the insurance company.
Retention Credit - for those who have been with the company for a long time, or have had insurance in general (with different companies) for a long time.
