HOMEOWNERS PREMIUMS ARE EASIER THAN YOU THINK
price you pay for homeowners insurance can vary by hundreds
of dollars depending on which insurance company you choose.
However, you can lower your insurance costs by asking your company
about any applicable discounts and by also doing some careful
shopping. The Western Insurance Information Service (WIIS) offers
the following tips:
your deductible. The deductible on your policy is the amount
you agree to pay for an insured loss. A typical deductible for
a homeowners policy is $250. Depending on your insurance company,
if you increase your deductible to $500, you can save up to
12 percent; to $1,000, you can save up to 24 percent; to $2,500
you can save up to 30 percent; and to $5,000 you can save up
to 37 percent. The higher your deductible, the lower your premium
Buy your home and auto policies from the same insurance company.
Some companies will offer discounts from 5 to 15 percent if
you buy your homeowners and auto insurance policy from them.
you buy a new home, take into account how much it will cost
to insure it. Some insurance companies will offer discounts
of 8 to 15 percent if your home is brand new. You can also save
5 to 15 percent if you consider the construction of your home.
For example, a frame construction provides better resistance
to earthquake damage which can reduce your premium. In addition,
the closer your home is to a fire station or hydrant, the lower
include the value of the land in your homeowners policy. The
land isn't at risk from theft, fire or other insured perils
stated in your policy.
up your home security. Install a smoke detector, burglar alarm
or dead-bolt locks. Some insurance companies offer discounts
if you install a sophisticated sprinkler system and fire and
burglar alarm that rings at the police station or other monitoring
smoke. Some insurance companies will offer discounts if all
residents in your home don't smoke.
if you are eligible for senior discounts. If you're at least
55 years old and retired, some insurance companies offer discounts.
about group coverages. Some insurance companies offer competitive
rates for employers, alumni and business associations.
around. Compare prices with several insurance companies before
buying your homeowners policy. Consult friends, consumer guides,
your state insurance department and insurance agents and companies
to get an idea of price ranges. Also consider the quality of
service the insurance company will be able to provide as well
as their financial rating.
Western Insurance Information Services