The first thing we usually say is raise your deductible because the more risk one shares with the insurer, the less the cost of coverage. However, there are many other ways to work with your insurer to decrease your risk and save money.
One of the most effective is to not only have a functioning burglar alarm system but to make sure the system includes smoke detectors to quickly detect fires. Just adding smoke detectors in your home can qualify for a 5 percent discount or more.
A good alarm system can save lives and most likely qualifies your home for a discount from your homeowners’ insurer. If you can spend money to save money, more sophisticated systems including fire sprinklers can bring a 15 to 20 percent discount, but before buying high-end systems, check with your insurer to know exactly what discounts would apply and how much can be saved.
Another possible discount to reduce your annual cost is to stay with your insurer for at least three to five years. Additionally, if you have multiple policies with the same insurer like auto and homeowners, life or umbrella liability you could save between five and 15 percent.
Here’s one that is becoming more important as the population ages. Those who retire or are close to retirement age can enjoy yet another benefit. For retired homeowners 55 or older, check with your insurance agent about a discount of up to 10 percent from some insurers.
A major step to obtaining the lowest cost of homeowners insurance is to talk with your agent or company and make sure that you are receiving as many discounts as your insurer has to offer.
That is one reason why homeowners are encouraged to talk with their agent or company annually or at least every two years. Keep in mind it is the homeowner’s responsibility to keep up with the various coverages, available discounts and options. This is the heart of being an informed consumer.
Here are few reasons why:
• Review your coverage to make sure your coverage is adequate. Keep in mind that damage to your home typically requires demolition and then reconstruction. You are not insuring your land, but the home that is on your land. Building costs are key rather than so-called market value.
• Make sure to have an accurate home inventory so you can account for the cost of your personal property. We buy items and often sell some of our belongings at garage sales. Only insure those items that you own. This is another good reason to keep in contact with your agent or insurer.
• Make sure you have adequate liability coverage should someone become injured on your property, or a pet bites someone. See the free “Home Inventory” link at www.giis.org.
• In hurricane-prone areas, you may receive additional discounts for wind resistant windows or retrofitting projects to help your home withstand high winds. Check with your insurer to find out what improvement projects qualify for discounts.
The more you know about your homeowners insurance, and what it does and does not cover, the better off you are and you can save money in the process.
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