Home Insurance

Homeowner Insurance Quote – Understanding is the key to saving

Saving at least 25 percent from your premium doesn’t have to seem like a fairy tale. When shopping for a homeowner insurance quote, be prepared and calculated for any question you might be asked. It’s needless to state that the quickest and most cost effective way to get a quote is online and the key for saving is correct comparison and truly understanding what determines your future home insurance quote.

Understand what Insurance companies expect and pay less for your home insurance.

The rates you are quoted depend on a few factors such as:

The condition of your home – Certain types of homes are less expensive to insure because they are more resistant to damage. For example, a brick home is preferable because of its resistance to wind damage.

The Construction of your house – Insurers factor in general wear and tear on your home when setting a premium. They will inspect such things as the condition of the roof, porches, decks, and the integrity of the home’s wiring system. Because new homes tend to be in better condition than older homes, some insurers will offer up to a 15 percent discount if your home is new.

Is there a smoker in the house? – Because smoking in the home greatly increases the risk of fire, some insurers will offer a discount of about 2-5 percent if no one in the home smoke.

Is the Home in a High Risk Area? – Flood and earthquake damage is not covered by standard home insurance policies. Special supplemental catastrophic policies that cover these conditions are available, but can be quite costly. If you are currently covered against these catastrophes through a government plan, however, research coverage through a private insurer. It may actually be lower.

Is There a Retiree Living in the Home? – If you or an individual living in the house is over the age of 55 and retired, check with your insurer to see if you qualify for a discount you may qualify for a discount of up to 10 percent at some companies. Most insurance companies offer these discounts because retired people are home more and can spot fires sooner than working people and have more time for maintaining their homes. Some insurance companies will offer discounts of up to 10 percent to seniors who qualify.

Safety factors – Many insurers also offer discounts of approximately 5 percent for safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinkler systems. You may also receive a discount if your home is in close proximity to a fire department.

Actions you can take to save

Raise Your Deductible – Most Insurance companies recommend a $500 deductible. If your financial status allows you to raise your deducible to $1000 you may save as much as 25 percent. Understand that deductibles are the amount of money you are willing to pay towards loss before your insurance company starts to pay a claim which basically means you just set an amount that you agree to pay in case of damage to your property.

Improve your home security – Many insurers also offer discounts of approximately 5 percent for safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinkler systems. You may also receive a discount if your home is in close proximity to a fire department.

Maintain a good credit record – Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowner’s insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

Buy your home and auto policies from the same insurer – Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

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