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Come to the Insurance Corner Page for advice and
suggestions. We change this column
frequently so bookmark this page and come back often for helpful information.
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Insurance is a highly competitive business. The price you pay for
your homeowner’s insurance can vary by hundreds of dollars, depending
on the insurance company you select and the state where you live.
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- Raise your deductible
Raising your deductible can save you premium dollars. For example, by
increasing your deductible from $250 to $500, you could possibly save up to
12 percent. Raise it to $1,000 for savings up to 24 percent. Raise it to
$2,500 for savings up to 30 percent. And raise it to $5,000 for savings up
to 37 percent, depending, of course, on your insurance company.
- Buy your home and auto policies from the same insurance company
Some companies that sell homeowner’s, auto and liability coverage will
knock 5 to 15 percent off your premium if you buy two or more policies from
them.
- When you buy a home - - buy a new one and choose the location wisely
A new home's electrical, heating and plumbing systems and overall structure
are likely to be in better shape than those of an older house. That could
mean a discount of 8 to 15 percent on your premium. Construction makes a
difference, too. Brick resists both wind damage and earthquake damage.
You'll also pay lower insurance premiums if you avoid areas that are prone
to catastrophic weather patterns. Your proximity to a police station, a full
time/volunteer fire station and a fire hydrant may also reduce your premiums
because you stand a better chance of quick response to an accident.
- Insure your house, not the land
Do not include the value of the land when determining how much homeowner’s
coverage you need. (It will still be there, even if the house burns down.)
- Beef up your home security
Typically, you can get a discount of at least 5 percent for a smoke
detector, carbon monoxide detector, burglar alarm, or dead-bolt locks. Some
companies offer to cut your premium by as much as 15 or 20 percent if you
install a sophisticated sprinkler system and a fire and burglar alarm that
rings at the police station or other monitoring facility. But these systems
are not cheap - - and not every system qualifies for the discount. Before
you start spending money on such devices, first determine which ones your
insurance company recommends, how much they cost and how much you'd save on
premiums.
- Stop smoking
Smoking accounts for more than 23,000 residential fires a year. It is the
leading known cause for residential fires in the U.S. That is why some
insurance companies offer to reduce premiums if all the residents in a house
are non-smokers.
- Ask about discounts for seniors
Retired people spend more time at home, so they spot fires sooner than
working people. Retired people also have more time for maintaining their
homes. If you're at least 55 years old and retired, you may qualify for a
discount of up to 10 percent at some companies.
- See if you can get group coverage
Alumni and business associations often work out a package deal with an
insurance company, with a discount for association members. Ask your
association's director if an insurance company is offering a discount on
homeowner’s insurance to you and your fellow graduates or colleagues.
- If you stay with the same insurance company...
If you've kept your coverage with a company for several years, you may
receive a discount for long-standing policyholders. Several insurance
companies will reduce your premiums by 5 percent if you stay with them for
three to five years, and by 10 percent if you remain a policyholder for six
years or more.
- Compare the limits in your policy and the value of your possessions
It is wise to cross-check your insurance with your possessions once a year
and make adjustments. If you make additions to your house, you should
increase your policy accordingly. On the other hand, some of your
possessions may decrease in value. In this case, as these assets depreciate
you will want to save money by reducing your floater coverage.
For more complete insurance info, see http://www.insuremarket.com/tools/tools.jsp
Go to our Money Matters Page for more information.
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