Homeowner’s Insurance – Keep Costs Low

As homeowner’s insurance costs have been on the rise, homeowners are looking for ways to control their insurance costs. Going without homeowner’s insurance is not an option for most homeowners, so we continue to pay our overpriced policy each year. Therefore, I have found some ways to help homeowners learn how to control their homeowner’s insurance costs each year.

Ways to Control Your Homeowner’s Insurance Cost:

Pay Attention

Don’t just accept your insurance agent’s word that they are saving you all that is possible. You must look at your policy completely and ask questions. Let them explain each section of the policy. It’s their job and they are getting paid for it, so don’t hesitate to question everything you don’t understand.

Deductible Increases

Homeowner’s insurance deductibles are going up across the country. Don’t get caught up with a percentage deductible if you can avoid it. There are actually homeowners who own $500,000 home with a 5% deductible that would have them end up paying $25,000.00 if they have property damage. Try to stay with a set deductible.

The Roof

If you are looking to buy a home, you should look for a hip roof. The hip roof is one of the most slippery shapes, so in high winds and storms these roofs are not as prone to damage. If you own a home with a hip roof, let your agent know and see if they offer a discount for that.

Location

Your homes location can drive up the price of homeowner’s insurance if you are in a flood prone area. Other factors that affect homeowner’s insurance include earthquake areas where you should have a wood frame home, and high wind areas where you should have a brick or stone home to save on your insurance.

Don’t File

Don’t file a claim unless it is a true emergency. Insurance was meant for emergency purposes only. For example: a tree crashing through your roof, a car driving through your home, a pipe or water heater flooding your home. Insurance is not meant for small projects that are under $1,500. And don’t make multiple claims; they will kick you off their insurance. And you will have trouble getting on with another agency.

Combine Policies

Most insurance companies will offer you a discount if you add multiple policies like home and auto. You can then add an umbrella policy for extra protection.

Unnecessary Coverage

If you don’t need flood insurance or earthquake coverage, don’t buy it. Don’t add in jewelry or collectibles if they are truly not valuable.