Expert Agent Tips On Reducing Home Insurance Premiums
Home insurance is imperative when you own a home. If you suffer a catastrophic loss, you cannot reasonably afford to rebuild your home without any type of assistance from an insurer. When you are shopping for homeowners insurance, it is very important to understand how you find the lowest and most affordable home insurance premiums without compromising your level of protection. By doing your homework and understanding how you can save money without reducing dwelling coverage or liability limits, you can lower your insurance premiums by receiving all the applicable discounts.
Tips On How To Reduce Home Insurance Premiums Without Reducing Coverage
I have been an insurance agent for 7 years through three different insurance companies. Each of these companies, while they have they own underwriting guidelines and requirements, offer specific discounts to homeowners who are looking to lower their premiums and lower their exposure to loss. Because I have a lot of experience with home insurance and saving my clients money, I can recommend effective ways for you to reduce your premiums with your current insurer or with new insurers while you are requesting comparison quotes. Here are some of the most effective ways to lower your premiums without selecting a sub-par policy that will place more of the burden on your shoulders:
Take Advantage of Home Security System Discounts
When you have a security system it can deter criminals from burglarizing your home or vandalizing the property. Some more advanced security systems also monitor the home for for fire and smoke threats. If you have a local, sounding alarm, you will receive a discount, typically between 5 and 10% off of the total dwelling and personal property premiums. If you have a monitoring and reporting alarm through a monitoring company, you can save even more off of your premiums, typically between 15 and 20%.
Raise Your Deductible
A low deductible translates into higher premiums. Deductibles apply to dwelling claims and personal property claims. This is the amount that you will be required to pay before the insurer will pay out. By raising your deductible, you lower your chances of file a claim and therefore lower your home insurance premiums. If you can reasonably afford to raise deductibles this is an effective way to reduce annual premiums and reduce the temptation of filing a small claim.
Bundling Auto Insurance
Multi-policy discounts are a great way to save a significant amount of money on two policies at once. Your insurer will offer you an incentive to purchase two lines of insurance with the company by applying a discount to each policy. By bundling with auto insurance, you can receive 10 to 20% off of your home insurance premiums and an additional percentage off of your auto insurance premiums. If you add up the annual savings, you will see that it really pays to bundle.
Take Advantage of Loyalty Incentives
You might want to contact your current insurer to see just what type of loyalty discounts the company offers. Some companies will reduce companies after you have been with the company for 3 years. In many cases, the loyalty discount will rise each year thereafter. If you can take advantage of additional discounts and still be loyal, it may payoff to stay with the same insurer.
Home insurance premiums are based on the rebuild cost of the property, how much risk is present, and whether or not the home systems are updated. While you cannot change specific factors, you can look for ways to reduce premiums by taking advantage of discounts. Be resourceful, compare rates, and choose a policy that provides both comprehensive and affordable coverage.
Guest Post By Walt Gentry
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