Homeowner’s insurance costs have been rising steadily. According to industry experts, it is the extraordinary number of catastrophes, the high cost of home repairs, the aging of the U.S. housing stock and the emergence of mold claims that are causing homeowners insurance rates to climb. Despite the rising costs there are still things you can do to reduce your premium.
Homeowners Insurance Rate Quotes
If you are in the market for a new home, check the cost of insuring the homes you are interested in. Even though the homes may look alike there, the premiums could vary significantly. Homeowner’s insurance premiums are affected by such things as: proximity to emergency services, age of the home’s systems (heating, electrical and plumbing), and the material the home is made out of. Additionally, flood insurance and earthquake damage are not covered by the standard homeowner’s policy. You will have to pay additional dollars for these policies.
Speaking of disasters, if you make your home more disaster resistant you could reduce your premiums. Check with your agent and see what specific improvements they give discounts for. Examples of disaster proofing are: adding storm shutters, reinforcing your roof, and retrofitting an older home to make it more capable of withstanding earthquakes. Also consider modernizing heating, plumbing and electrical systems to reduce the risk of fire and water damage.
If you install smoke detectors, burglar alarms or dead-bolt locks, you can usually get a five to ten percent discount. Some insurers may give as much as 15 to 20 percent discount for a sophisticated sprinkler system or an alarm system that rings the police. Always check with your insurer before making any of these improvements and find out which ones they will give discounts for and how much.
Insure only your home and not the land. Your land can’t really be damaged so there is no need to insure it. Only purchase enough insurance to cover the value of your home.
You can save anywhere from 5% to 15% if you purchase all your insurance policies from one insurance company. This called a multi-line discount. Also, if you stay with the same insurer for several years you could be eligible for a long-term policyholder discount. Some insurance companies will give you a 5% discount if you are with them for three to five years and a 10% discount if stay for six years or more.
If you increase your deductible (the amount of money you must pay before the insurance takes effect) to $1,000 from $500.00 you could save as much as 25% on your premium.
All these discounts could add up to some significant savings on your premiums and safer house to live in.
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