AFFORDABLE HOMEOWNERS PREMIUMS
ARE EASIER THAN YOU THINK
The price you pay for homeowners insurance can vary by hundreds of
dollars depending on which insurance company you choose. However, you
can lower your insurance costs by asking your company about any
applicable discounts and by also doing some careful shopping. The
Western Insurance Information Service (WIIS) offers the following tips:
Raise your deductible. The deductible on your policy is the amount
you agree to pay for an insured loss. A typical deductible for a
homeowners policy is $250. Depending on your insurance company, if
you increase your deductible to $500, you can save up to 12 percent;
to $1,000, you can save up to 24 percent; to $2,500 you can save up
to 30 percent; and to $5,000 you can save up to 37 percent. The
higher your deductible, the lower your premium will be.
- Buy your home and auto policies from the same
insurance company. Some companies will offer discounts from 5 to 15
percent if you buy your homeowners and auto insurance policy from them.
- If you buy a new home, take into account how much
it will cost to insure it. Some insurance companies will offer
discounts of 8 to 15 percent if your home is brand new. You can also
save 5 to 15 percent if you consider the construction of your home.
For example, a frame construction provides better resistance to
earthquake damage which can reduce your premium. In addition, the
closer your home is to a fire station or hydrant, the lower your premium.
- Don't include the value of the land in your
homeowners policy. The land isn't at risk from theft, fire or other
insured perils stated in your policy.
- Beef up your home security. Install a smoke
detector, burglar alarm or dead-bolt locks. Some insurance companies
offer discounts if you install a sophisticated sprinkler system and
fire and burglar alarm that rings at the police station or other
- Don't smoke. Some insurance companies will offer
discounts if all residents in your home don't smoke.
- See if you are eligible for senior discounts. If
you're at least 55 years old and retired, some insurance companies
- Ask about group coverages. Some insurance companies
offer competitive rates for employers, alumni and business associations.
- Shop around. Compare prices with several insurance
companies before buying your homeowners policy. Consult friends,
consumer guides, your state insurance department and insurance agents
and companies to get an idea of price ranges. Also consider the
quality of service the insurance company will be able to provide as
well as their financial rating.
Source: Western Insurance Information Services