Homeowner's and renter's insurance can vary tremendously both in
coverage and in price. Select a company based not on price alone,
but on service quality. Each company is unique. But, there are a few
ways to ensure you get the most for your insurance dollar.
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BEFORE YOU BUY |
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Consider homeowner's insurance before you purchase a home to save
between 5 and 15 percent. Some insurance providers discount property
coverage if your home is close to a fire hydrant or in a professional
rather than volunteer fire district. If the electrical, heating and
plumbing systems are less than 10 years old, your coverage could be
less. If you live in a brick home (for those on the East coast), you're
less prone to wind damage. If you live in a wood-framed home (if you
live near earthquake faults), you are less prone to quake damage.
Flood and earthquake damage protection is not covered in standard
homeowner's insurance and could run up to $500 per year depending
on the location of your home.
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PRICE AROUND |
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Use the competitive, side-by-side insurance quotes available from GoApply to quickly
and easily compare companies, coverage and fees. Other ways to comparison
shop are through the yellow pages, consumer guides, your state insurance
department or friend and family recommendations.
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INCREASE YOUR
DEDUCTIBLE |
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Your deductible is the out-of-pocket expense you pay toward a loss
before the insurance company begins coverage. The higher your deductible,
the more you are responsible for. Most companies recommend at least
a $500 deductible. If you increase your deductible to $500, you may
reduce your premium up to 12 percent. Increase it to $1,000, and save
up to 25 percent. Ultimately, you could increase your deductible to
$5,000 and save up to 37 percent depending on which insurance company
you use. This is a chance, obviously, as you will have to pay this
fee out of pocket should anything occur.
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GROUP YOUR POLICIES |
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Group Homeowner's or Renters with Auto Insurance. Some companies offer
discounts of 5 to 15 percent if you buy two or more insurance policies
with them. If your auto insurance company offers home insurance, you
could benefit from using the same company for both. But be sure the
combined price is lower than it would be if you used separate insurance
companies for each.
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USE YOUR ASSOCIATIONS |
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Some alumni, business associations or employers negotiate discounts
on insurance for members. Look into the organizations you're a member
of to see if you would benefit from this perk.
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SECURE YOUR HOME |
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A smoke detector, burglar alarm or dead bolt lock
can usually reap discounts of at least 5 percent. If you install a
high-tech sprinkler system, fire and burglar alarm that rings the
police, fire or monitoring station, you may obtain a discount of up
to 20 percent. Before you buy a system solely for this reason, check
with your insurance company to make sure the system aligns with their
discount policies.
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DISASTER-PROOF |
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Consult with your insurance company on ways you could make your home
more resistant to natural disasters. Adding items like storm shutters,
reinforced roofing or retrofitting older homes could protect from
storms or earthquakes. Heating, plumbing and electrical modernization
could also reduce the risk of fire or water damage.
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QUIT SMOKING |
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Consult with your insurance company about policy discounts for non-smokers.
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OMIT LAND VALUE |
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Because the land below your home is not at risk of theft, wind storms,
fire or natural disaster, don't include it in the value of your homeowner's
insurance policy. This coverage raises your premium.
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REASSESS NEEDS
ANNUALLY |
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Don't automatically renew the same coverage year to year. Reevaluate
new purchases and remove discarded property from your policy. Some
items may also drop in value as time passes, so reduce or cancel
your floater, or the extra insurance you purchase for non-covered
items.
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BE LOYAL |
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Some insurance companies offer discounts to individuals who've maintained
their policies with them for several years. Discounts could be as great
as 5 percent for 3 to 5 year of loyalty, or up to 10 percent for policyholders
of six years or more.
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PRIVATE INSURANCE |
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Buying homeowner's insurance through a government plan if you live
in a high-risk area may not be your best option. Shop around with
an insurance agent or contact your state department of insurance.
You may be able to buy lower priced insurance on the private market.
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OTHER DISCOUNTS |
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Check with your insurance company to discover state or population
specific discounts. Some companies offer retired individuals lower
rates because they are home more often and less likely to fall victim
to burglary, can spot fires sooner and have more time to maintain
their property. |
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