Tips to Lower Your Homeowner’s Insurance
The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. By researching companies, policies, and provisions, you can find the company and plan that are right for you. Here are some things to consider when buying homeowners insurance. The Kansas City local movers have a few tips to help you lower rates and also help you learn what to avoid so that your rates don’t spike.
Shop around for different policies.
Ask relatives and friends, colleagues, online price quotes, insurance agents, and look into consumer guides and see what companies consistently get good reviews and praise. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don't consider price alone. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. To assess service quality, talk to a number of insurance reps to get a feeling for the type of service they give. Ask them what they would do to lower your costs.
Pump up your deductible.
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.
Lump your policies.
Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverage from different companies. Also, make sure that you are confident putting all of your policies into one company.
Maintain your home. An independent insurance agent will visit the home before processing a claim. At the least, an agent with a big insurance company is going to drive by. The abandoned car, an overgrown lawn, cracking wood and peeling paint—these all are indications that the prior owner didn't have "pride of ownership." Companies don’t want to insure thinks that aren’t taken care of, as they might be more susceptible to a variety of damages that will cost them money.
Install an alarm system.
A burglar or fire alarm that automatically generates a call to a security company or fire station can mean a 5% to 10% discount on your premium. If it's in a gated community or in one with its own security measures, additional discounts may be available. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.