1. Shop around
Take your time before get your home owners insurance. Get referrals from people you know and do your research. The National Association of Insurance Commissioners www.naic.org has great information for you.
2. Keep your deductible high
The higher youâre deductible is the better your premium will be. When you can afford a $1000 deductible you can safe up to 25% on your premium, most insurance companies asking for a $500 deductible.
3. Donât include the land in your insurance
The price you paid for your home includes the land it stands on (in most states) and it is not in risk of being stolen or fire (you could just make sure the trees are covered). The land will always be there so consider not including it in the coverage.
4. Keep all your policies with one company
When you keep all of your policies with one insurance company, like the house and your auto, you can save with a multi-policy discount. Depending in the insurance company it can vary between 5-15%.
5. Disaster proof your home for your area.
You may be able to save on your premium when you retrofit your home to make it more resistant to windstorms. Older homes may get a break when they are being modernized with new heating, plumbing, and electric. You need to contact your insurance agent for further assistant on this.
6. Add to your home security
Adding a smoke detector, fire extinguisher, deadbolt locks and a monitored security system could get you a possible insurance discount of 5%. Before you do any modifications like this contact your insurance agent for recommendations.
7. Look for other discounts
Non-smokers can get you a discount with some insurance companies. When you are 55+ and retired, and you live in the home most of the year, you could qualify for another discount.
8. Credit Score
Keep a good credit score, the better your credit the better will be your insurance premium. Make sure you check your credit on an annual basis.
9. Donât move from insurance company to insurance company
Some insurance company give special discounts for long term policy holders. The longer you stay with the company the higher the discount will be. You could be eligible for discounts from 5-10%.
10. Annual policy review
Did you add a floater for the high end computer you no longer owned or grandmaâs jewelry you have sold at auction? Check and see if you had something included in your policy that you no longer own. Have it removed and save the difference.
11. Private insurance VS. Government plan
Government plans are higher than private insurance plans, especially in high risk areas. Check for possible private insurance carriers who might insure homes in a high risk area. A high risk area is for instance along the coast or areas of high crime.
12. Shop for insurance before you buy
Call your insurance company before you buy and they will let you know what type of home will have a more reasonable insurance premium. Some things the insurance company will take in to account are the age of the home, the age of all of the systems (plumbing, heating), age of the roof, and possibly the type of siding.
13. Check the CLUE Report
For many homes you can find a report which shows the insurance claims history of the home. With this you could decide what potential problems the property might have.
14. Other insurance
Remember that when your future house is in a flood plain you have to get flood insurance. That could add in an average of about $400 annually to your insurance premium. When your house is in an earthquake prone area you also need to buy a separate earthquake policy. Earthquakes are not covered under a standard policy.
Disclaimer: I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.
The Central Indianaâs housing inventory remaining low is not surprising. We had an unusually harsh winter and many homeowners were reluctant to list their homes for sale. With the warmer weather we should see an uptrend in available homes. With the interest rates remaining low, and forecasts indicating no huge increases until 2015, we could have a great 2014 selling season.
