Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.
Ways to Save
There are a number of ways that you can save on you homeowners insurance. Insurance companies offer several different types of discounts. Following are a few suggestions on ways to cuts costs*:
- Let us compare rates — Contact our office to compare your rate with other insurance companies. But don’t consider premium alone; consider the service and policy contract of other carriers. Sometimes lowering the premium can decrease coverage as well.
- Increase your deductible — Increasing your deductible from $250 to $500 can save from up to 10%; increasing to $1,000 can save up to 20%. Some carriers offer deductibles options up to $25,000. Just make sure you can afford to pay the deductible in the event of a loss.
- Place your homeowners and auto coverage with the same company — Many carriers offer discounts ranging from 10-20% off your homeowners premiums if they also carry your auto coverage.
- Increase security — Installing a burglar or fire alarm or sprinkler system not only helps to protect your valuables, but it can also help you save an additional 5-15% depending on the type of system installed.
- Stay with one company — Some carriers offer discounts of 5-10% if they’ve had your insurance for 3 or more years.
- Review your policy annually — Your policy should reflect the value of your home and it’s contents. Who knows best what’s happening in your home than you do? If you have moved or sold a home, or maybe you sold a valuable painting that you had scheduled, please notify your agent promptly. Also, if you have made any major purchases or additions to your home, your coverage may need to be adjusted accordingly.
*All of these discounts may vary by insurance company. Supplemental documentation may be required. Please contact our office to find out more information.