How to Save on Home Insurance
Feel like you’re paying more for homeowners insurance than you used to, it's a safe bet to say your feeling would be correct. Over the past 20 years, homeowners insurance rates have increased over 50% across the United States.
You no doubt want to make sure your home is protected, but you don’t want to pay more than you have to, either. Here are a few tips you can do to make sure you get the best deal on homeowners insurance:
- Shop around. Rates can vary dramatically from one company to another - and there are hundreds of different insurers that offer homeowners insurance. If you haven’t researched the market in the past 24 months, it makes sense to shop. Paschall Insurance Group can help, and since we aren’t tied to one insurance company, we are able to offer you plenty of options.
- Increase your deductible. This one change can help significantly reduce or even eliminate your annual premium increase altogether. If making this change you should still be diligent about keeping funds set aside in case a claim needs to be filed.
- Don’t file small claims. If a homeowners claim would cost less than $1,000, it probably doesn’t make sense to file it. Insurance companies track customer claims, and even a claim of a few hundred dollars could cause a client to miss out on “loss-free” discounts.
- Bundle with auto or umbrella insurance. When you buy insurance for your home and car from the same company, you usually get a significant discount on both policies. Other policies, such as umbrella insurance, might qualify, too.
- Maintain good credit. In most states, insurers offer discounts to applicants with high credit scores, so keeping a solid credit history can lower your insurance costs. To protect your credit rating, pay your bills on time, keep outstanding balances low, and monitor your credit report regularly.
- Review your policy carefully. You likely are eligible for a number of discounts and credits, so make sure you get them! Homeowners often receive discounts for having newer homes, multiple policies with the same company, good credit and a clean claims history. Even your proximity to a fire hydrant might save you money. And if your situation has changed, let your insurer know immediately as you could be eligible for even more discounts.
- Improve your home security and safety. Deadbolts, burglar alarms, and other security devices are all ways to keep your home safe and potentially lower your insurance costs. For example, an alarm that connects to police, fire, or other monitoring stations can save you as much as 20% on your homeowners premium.
Keep in mind that different companies offer different discounts, and options will vary depending on where you live. It is important to sit down and review your policy with your agent every couple of years. The insurance market is constantly changing so make sure you are always getting the best coverage at the best price for your insurance needs.