It is possible for homeowners to get the most affordable deals on home insurance rates if they try different routes. For starters, they can contact an insurance doctor, or a licensed independent insurance broker who can, for homeowners insurance garner and compare rates from multiple carriers to find the most suitable deal for them. An insurance doctor can also provide advice and guidance to help homeowners understand their policy and coverage options.
For those who want to rely on their own knowledge base and expertise, this article aims to list down some of the best suggestions (that have been shaped with the help of actual data and reports) to help them get good deals.
It is observed that most of the insurance companies premiums for home insurance that provide nearly the same coverage (with minor differences) vary by as much as 0 from one another. However, those homeowners who have had late payment penalties, judgments, bankruptcies, etc., in the last five years are likely to pay more insurance premiums. These homeowners even stand the chance of being denied insurance.
However, there are three methods by which the cost of home insurance can be brought down. They are briefly described below.
The deductible is the amount of money that the homeowner has to pay (when a loss occurs) before the insurance company pays off a claim according to the policy that is held. If the deductible is higher, then the premium that is charged is likely to be lower. In today’s scenario, the typical value of a deductible by a majority of insurance companies is about $500 at a minimum.
If this deductible can be increased to an amount of $1000, about 25 percent can be saved on premium amounts. In case the homeowner lives in an area that is prone to disasters there may be different deductibles for specific forms of damage. Whereas a residence in the eastern coast may have provision for a windstorm deductible, there may be a provision for a hail deductible if the residence is located in an area prone to hailstorms. Most earthquake-prone areas have an earthquake deductible.
Increase Home Security
With every new installation that adds to the security of your house, one can get discounts on the premium paid. With the installation of a smoke detector, dead-bolt locks, or burglar alarm from top-line companies like Livewatch Security the premium can go down by at least 5 percent. There can even be a discount of 15 percent to 20 percent if advanced sprinkler systems or a burglar alarm that rings at the local police station or fire station are installed.
This is only the start. You could lower the premium amount on your policy even more by going further with your security. To that end, you as a homeowner might want to talk to a reputed home security system supplier. These companies may offer comprehensive solutions that include not only burglar alarms but also advanced features such as real-time monitoring and state-of-the-art locks. That has a chance of bringing your premium down even more.
Some insurance companies reduce premiums by as much as 5 percent to 15 percent if a buyer takes more than two policies from them. However, it makes sense to ensure that the combined price paid for the policies is less than what would be paid for purchasing separate policies from different insurance companies.