How can I lower my Homeowners Insurance Premium?
There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, claim history, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor.
- Maintain good credit. Increasingly, insurers are using credit-based insurance scores to determine premiums.
- The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible.
- Every major insurer offers discounts. Buying your homeowners and auto policies from the same company may qualify for a discount. Various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.
- An annual check-up with your existing Insurance Agent on your homeowners insurance can result in a healthier policy and a healthier pocketbook.
Have your Agent provide you with and reveiw the Comprehensive Loss Underwriting Exchange (CLUE). Clue is a detailed property claim history for the most recent five years, which insurers may use to deny coverage. Very similary to your credit report, verify that no one has made any false claims against your property.
Price Shop. Insurance Companies adjust their pricing structures just like any other company. Before your policy is due to expire, take time to get price quotes from other Homeowners Insurance providers and see what their rates would be to cover exactly what you have.
Call 248-762-5290 or email Wendy
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