Save Money On Your Homeowners Insurance
Insurance is a highly competitive business and the price paid by the
consumer for homeowners insurance may vary by hundreds of dollars,
depending on the insurance company with which the consumer intends to
Companies offer several types of discounts, but they may not always
offer the same discount or the same amount of discount. That is why
the consumer should ask his or her insurance agent or company
representative about any discounts that are available.
What should a prospective homeowners policy holder think about when
assessing which policy to obtain? Here are several ideas for
potentially lowering costs.
Prices vary so it pays to shop around. Ask friends, check the Yellow
Pages, refer to consumer guides, insurance agents, the consumer phone
line of the state's insurance commissioner's office and the companies
for price information.
Raise the deductible
Deductibles are the amount of money the homeowner pays toward a loss
before the insurance company starts to pay according to the terms of
the policy. Deductibles on homeowners policies typically start at
$250. By increasing the deductible to $500, $1,000, $2,500, or
$5,000, discounts may be obtained, depending on the insurance company.
Buy home and auto policies from the same insurer
Some companies that sell homeowners and auto coverage may reduce
their premium if two or more policies are purchased from them. When
buying a home, consider how much insuring it will cost.
A new home's electrical, heating and plumbing systems and overall
structure are likely to be in better shape than those of an older
house. Insurers may offer a discount if the house is new.
Choice of construction materials and design could reduce the premium.
Brick, because of its resistance to wind damage, is better in
Georgia. Proximity to fire station, firefighters and fire hydrants
also affects premiums.
Insure the house, not the land
The land under the house isn't at risk from theft, windstorm, fire
and other perils covered in a homeowners policy. Therefore, the value
of the land should not be included in deciding how much homeowners
insurance to buy.
Beef up home security
Some insurance companies offer discounts for smoke detectors, burglar
and fire alarm systems, or dead-bolt locks. Others offer discounts
for homes equipped with a sprinkler system and fire detection and
burglar alarms that ring at the police station or at a monitoring
facility. Before buying such a system, consumers should check with
their insurers to validate that such as system will be eligible for a
discount and how much the device or system would cost. Most
importantly, the consumer should know how much may be saved on premiums.
Smoking accounts for more than 23,000 residential fires in a year
nationwide. That's why some insurers offer to reduce premiums if all
the residents in a house do not smoke.
Seek out discounts for seniors
Retired people stay at home more and spot fires sooner than working
people. Retirees also have more time to maintain their homes. If a
homeowner is at least 55 years old and retired, he or she may qualify
for a discount at some companies.
Compare the limits in the policy with the value of the possessions in
the home at least once a year.
Policies should cover any major purchases or additions to the
contents of the home. Remember that additions to the physical
structure of the home should be reported to your agent or insurance
company for a reevaluation of the limits of your policy. In addition,
review your contents which may require a special scheduling on your
policy. Such items include jewelry, watches, furs and computers to
name a few. If you have sold or given away special schedule items,
they should removed from your policy.
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