Homeowners insurance coverage are offered in two form of perils (Causes of the loss or damage):
- Named Peril or Covered Peril: Only the causes covered are listed here.
- Open Peril or All-risk Peril: Only the specific causes excluded from coverage are listed here.
Home insurance is not mandatory for homeowners unlike in case of auto insurance. There is no legal obligation to having a homeowners insurance in any state in the United States. But having a homeowners insurance ensures financial support in case of potential risk and damages.
What Can You Do to Lower Your Home Insurance Premium?
Insurance premiums depend upon a variety of factors. Your Geo location, nearby facilities, the level of security, etc. determines whether your premium would be high or low. But, there is always a way to lower your insurance premium if you are well informed and act in the right way. Here I will discuss the important factors you need to consider if you want an efficient home insurance policy when you face those potential risks.
- Do Your Homework
Every individual home or property falls under unique risk assessment. Therefore, shop around policies from different companies. Find the policy that suits your needs. There are several ways to check for homeowners insurance policies offered by different companies. The quickest way is to go online, fill out forms with correct information on insurance comparing websites and look for suitable insurance policies from the result provided. But the smartest way is to contact an insurance agent, discuss your specific needs and see what they offer to meet your demands. This way you will get optimal choices based on your needs. Then you can select the best option for a better coverage.
- Increase the Deductibles
Boosting your deductibles can immediately lower the cost of your insurance premium. A higher deductible means lower risk for the insurance company. But, you have to be realistic about the amount. It’s the amount you are going to pay from your pocket before the insurance company pays any expenses. Make sure you can afford the amount in case there is critical repair needed for your house.
- Improve Your Home Security
A highly secured house means there is low risk involved. Many companies offer discount for home insurance policies for different security aspects like fire alarms, smoke detectors, burglar alarms etc. Consult with your insurance agent before buying a security system. Otherwise, you might end up buying a system in which your insurance policy does not offer any discount.
- Make Your Home more Resistant to Disasters
A home with a strong structure represents low risk. You can add storm shutters, reinforce your roof and window. These will make your home highly resistant to natural disasters. A lot of people in the United States live in hurricane-prone areas. If you are one of those people, reinforce and anchor the roof, wall and floor. Install hurricane-rated entry and garage doors. Despite the high installation cost, long-term investments will be significantly beneficial for insurance policies.
Besides, an updated utility can minimize the risk of water and fire damage resulting in a lower insurance cost.
- Reduce The Risk from Damage Due to Flood
The first thing you need to remember about flood is that flood damage is not covered under homeowners insurance. But, if you live in an area with potential flood risk, your home insurance cost can increase significantly. There are certain steps you can take to lower your home insurance premium, such as elevating your home base, elevating your utilities above ground level, installing flood openings etc. Besides, if you live in a moderate to high-risk area, consider having flood insurance.
- Look for Insurance Discounts
Consult your insurance agent about the discounts offered for the field mentioned above as well as other available discounts. Go through the list to check your eligibility for different discounts. You might miss out an opportunity of discount if you don’t ask for it.
- Get Rid of Unnecessary Coverage
Insurance companies provide coverages for a variety of items. If you can get rid of unnecessary items, your insurance premium can decrease significantly. Let’s assume, under your property insurance the land is also covered. Now think for a moment, is the land under potential threat from burglars or fires or storms? Then why don’t you just remove the land from coverage? It would have a significant impact on the insurance premium. Besides, if you have any unnecessary old sheds on your property that are covered under the home insurance policy, remove that from coverage.
- Seek Multiple Policies from Same Insurance Providers
Most insurance companies rewards clients who have multiple policies with them. It may not always be a good idea. You can get a better deal for auto insurance in one company and home insurance in another. Consult your agent before moving all your policies under the same insurance company.
- Be Careful When Making Claims
When people have a history of making frequent claims, their home insurance premium is sure to increase. Insurance companies assess these kind of clients as high-risk clients. High-risk clients may even face cancelation of policy for filing too many claims. If you face a minor damage, try repairing on your own expenses. In the long run, it will enhance your reputation as a client. Besides, you can secure no-claim discounts from most companies if you have no record of previous claims.
- Take Care of Large Trees around Your House
If there is a large tree around your house, take proper care of it. Make sure there are no bulky or dead branches in the vicinity of your roof or wall. Storms or strong winds may cause them to drop on your building and cause serious damage.
- Improve Your Credit Score
Insurance companies assess clients with bad credit score as high-risk clients. Reduce your debt to income ratio and pay off credit card bills.
- Terms & Conditions
Check the terms and conditions of your policy about what is covered and what is not. It would say a lot about the policy. For example, your policy states coverage for ‘High-end Jewelry’ but you don’t own any. You can negotiate about that term for your property insurance.
- Buy Property with A Close Proximity to Emergency Services
The distance between your property and emergency services like fire service can highly impact your homeowners insurance cost. Seek for property with close proximity to emergency services. If you have already bought a home and emergency services are comparatively far away, raise local awareness and apply to corresponding authority for better emergency services.
These steps can significantly lower your home insurance premium cost. At Chapman Insurance Group we highly emphasize fufulling every individual customer’s needs. We pride ourselves as a leading agency in Southwest Florida securing the best home insurance policy for our customers. Get in touch with us for a homeowners insurance quote.