15 Ways to Save On Your Homeowners Insurance

1. Shop Around

As it sounds, it is best to look at several different insurance companies to find competitive prices. A good way to do this is to find an insurance agent to do the shopping for you.

2. Senior Discounts

If you are 55 or older and retired you may find certain insurance companies willing to discount you. Seniors tend to spend more time at home allowing for more time for maintenance and the ability to spot any fires sooner than a working individual. A senior discount can be as much as 10 percent.

3. Stop Smoking

Believe it or not, smoking mishaps account for almost 23,000 residential fires annually. Some insurance companies offer lower premiums if your home is smoke free.

4. Up Your Deductible

Home Insurance deductibles generally start around $250. If you raise your deductible to $500 you can save up to 12 percent. If you raise it to $1,000 you can save $24 percent. Just make sure you can afford the out-of-pocket price of the deductible if ever a situation were to arise.

5. Combine Your Home and Auto Policies

By buying both policies from the same insurance company, you may be able to get a multi-line discount. This is one of the more substantial discounts you can get for your insurance.

6. Improve Your Home’s Security

By adding such improvements to your home as a deadbolt lock, a burglar alarm, or smoke detectors, you can receive from some insurance companies up to $5.00 an improvement. Some companies even offer up to 15 to 20 percent for an added home security system.

7. Group Coverage

Larger employers and business associations often work out discounted prices and deals with the insurance companies for their employees and members. Check with your employer or association to see if they qualify.

8. Make EFT Payments

Many insurance companies now chare up to $5.00 for mail payments. You can save this amount by having the company automatically deduct the payments from a banking account or credit card.

9. Maintain Your Credit

Some insurance companies, in states it is permitted, check a person’s credit history to assess the “risk” and adjust the premium prices accordingly. Keep your credit in good condition and this may help you.

10. Check Your Coverage Every Year

Before renewing a policy, it is good to check your coverage against your current assets. For example, if you recently sold a valuable item you would want that to be reflected in the amount of property coverage you have. Also, if you were to put in an addition, you may wish to up your dwelling coverage.

11. Consider Insurance When Purchasing a Home

When you are thinking of buying a home, consider your insurance. For instance, if you buy an older home the heating, electric, etc are probably more outdated and therefore the insurance would be more. A newer home has new systems and therefore, would allow for a lower premium. Also, if you are thinking of building or buying a home, think of the area in which you wish to live. If you are on the Atlantic coast for example, you would want to think of the other insurance costs you would have, i.e. wind damage. The Pacific coast you would need to worry about the extra cost of earthquake insurance as these calamities are not covered under most home insurance policies.

12. Skip Insuring Your Land; Insure Only Your Home

Your home is at risk of various disasters such as fire, theft, etc. but the land it’s on is not at such risk. Do not include the value of the land your house sits on when determining coverages and this will help you save.

13. Consider Replacement Cost vs. Actual Cash Value

The actual cash value reimburses you for the amount of your property after the damage or loss, minus your deductible. The replacement cost reimburses the full value of an item lost after you’ve purchased the new one and submitted your receipts to the insurance company. This option though it comes with a high premium, offers you full reimbursement of your possessions.

14. Stay with an Insurance Company

Some insurance companies will offer small discounts to loyal customers if you have been with them for several years. Some insurers offer a 5 percent discount after 3 to 5 years and others offer 10 percent after more than 6 years.

15. Check for Private Insurance First

If you live in a high risk area – one vulnerable to forest fires, windstorms, etc – first check to see if you are able to purchase your insurance from a private insurance agent before committing to the state insurer. Often, private insurance agents offer lower prices than the state insurer.

Before applying any of these discount ideas, you will want to check with a local agent to be sure your current or soon to be insurance company offers the discounts you are looking to receive. Paradiso Insurance of Stafford Springs, CT offers competitive prices and any advice you may seek. Visit www.paradisoinsurance.com today or call Chris Paradiso at 1-800-660-2991.

Jackie from the Paradiso Insurance Team