Shopping for insurance services – especially homeowners insurance – can be confusing, complicated and overwhelming. Each insurance agency is different in how they handle claims and what you can expect. There are several methods to shopping for homeowners insurance, but here are a few great tips and tricks to consider before you decide on an insurance agency and policy to fit your needs.
First, you may want to consider raising your deductible. Although this increases the cap you’re required to pay if something goes wrong, it can also save you money on your premiums in the long run if the cost of the damage exceeds the deductible. When looking into a policy for a specific insurance agency, keep in mind that the recommended deductible is usually around $500, but raising your deductible to $1000 could save you up to 25%, especially if you live in a disaster-prone area – about one in 30 insured homes has a property damage claim related to wind or hail each year.
Another good technique is to find an insurance agent that will sell you both homeowners and car insurance/auto insurance. This could save you anywhere from 5%-15% on your premiums. This isn’t difficult to find, as many insurance agents will offer this type of promotion.
Next, improving your home security can certainly decrease the cost of homeowners insurance. You can usually receive a discount of up to 5% by installing a burglar alarm, deadbolt locks and smoke detectors. Some companies will even give you a discount of up to 20% for installing a sophisticated sprinkler system and burglar and smoke alarms that automatically notify the police. However, these systems are not cheap, and not every system is eligible for the discount.
Finally, look into other discounts. Depending on your insurance agency, you may be able to receive a discount if you are retired. This is because of the extra time spent at home. Since many retired people are home more often, they are less likely to be burglarized and more likely to spot a fire before any significant damage occurs.
Overall, shopping for homeowners insurance can be a tricky process. But if you do your research and look at all your options, you can save money while staying protected.
