Homeowner’s insurance is a necessity, for all property owners. For instance, it might not be required by law, but if you borrow money to buy a home, your mortgage lender will most usually require you to have homeowner’s insurance. This helps to protect their investment and yours.
If your home loan is completely paid off, it’s still smart to continue homeowner’s insurance. You want to protect your investment. But, paid off or not paid off, you still don’t want to overpay for the coverage on your homeowners insurance, right?
Here are 7 tips to help you keep your rates low:
1. Consult the experts.
First off, save yourself some time and headache by speaking with a local independent insurance agent. They have expert, inside knowledge of the insurance industry and are licensed. Some agencies, like Hettler Insurance Agency in Lubbock Texas, even have Certified Insurance Counselors on staff (CIC is one of the highest credentials available). The work for you, not the insurance carrier. Let your agent do the work, so you don’t have to.
2. Take home security seriously.
You can save money on your homeowner’s insurance policy by installing an approved security system. Insurance companies set your rates by assessing how much risk is involved before they issue a policy. If you want to reduce your rates, then lower your perceived risk. Insurance is all about managing risk.
* One thing that insurance carriers look at is crime statistics. According to statistics, homes with a security system are burglarized less often. The insurance carriers know that stat. You should be offered lower rates if you have a good security system.
3. Go with a higher deductible.
Your deductible is the determining factor as to how much of a claimed loss you need to cover out of your own pocket. If you agree to cover a slightly larger portion, then your monthly insurance premium will be less. Do you want to save 25% off your monthly premiums, then raising your deductible from $500 to $1000 just might do the trick.
* It’s not likely that more than a few people would file a claim for $500 anyway. Reason being, they know if they do so then their monthly rates would likely increase. This is another good reason for dial up that deductible just a bit.
4. Got too much insurance?
Be careful with this one! But. the amount of money you pay for your house may not be the same as the cost of replacement. In one scenario, if you bought your home for $250,000 and you have a $250,000 insurance policy, you may be paying for more coverage than you need. But use caution, and do some research to compare the appraisal and estimated cost of replacement. This one “too much insurance” tip may not always apply to your situation.
* Another thing to consider is that when you bought your home, you probably bought the land as well as the building. If you already own the land, then you might only need enough insurance to cover the building rebuild.
5. Bundle policies, get a discount.
Do you have more than one type of insurance policy with the same company? Then, you can probably get discounts on each policy if you can bundle them together. For example, do you carry homeowner’s insurance, auto insurance, and life insurance with the same company? Then, you most likely qualify for a discount on each policy.
6. Are there other discounts?
There tend to be various situations that allow insurance carriers to offer a discount. Give your independent insurance agent a call. Ask if you’re eligible for other discounts.
7. Shop around.
One of the easiest ways to save money on anything is to do some comparison shopping. Once again, take advantage of your local independent insurance agent. Let them do the shopping.
* Lots of insurance carriers are competing for your business. Like any product or service, when lots of companies offer the same product or service, you can always find somebody with a lower price. And, this is where an independent insurance agent comes in handy. You don’t wanna have to call 100’s of companies. Let your agent do it all for you.
Following these tips above is sure to save you some money. Who knows, you could save a big chunk of change. Invest a little time upfront and you could have more money to invest in something fun. When you get ready for an insurance agency to do the work for you, just call (806) 798-7800 for Hettler Insurance Agency.