Saving Money

 

 

  

Because the cost of your homeowners insurance can vary by hundreds of dollars depending on the size of your home, where you live, the type of home you live in, construction and feature types, etc.. Because every penny counts, here are some possible steps to help you save money on your homeowners insurance:

  • Raising your deductible--A deductible is the amount of money you must pay up front out of pocket for a loss before the insurance company will pay for anything. The typical minimum deductible for a homeowners policy starts at $250. But look at the following chart:
If you increase your deductible to... You may save on your homeowners policy...
$500 up to 12%
$1,000 up to 24%
$2,500 up to 30%
$5,000 up to 37%

  • Obtain home insurance and auto insurance from the same insurer--These days companies will commonly give you a discount of 5% to 15% off your total premium if you purchase two or more policies from them.
  • Avoid flood areas--According to the National Flood Insurance Program's statistics, the average cost of flood insurance is slightly more than $400 a year.
  • Don't insure your land--Don't include the value of your land in deciding how much homeowners insurance to buy. The reason is the land under your house is not prone to theft, fire, or other weather extremes that are covered in your homeowners policy.
  • Improve your home security--We typically offer a discount if you have a smoke detector, burglar alarm, or dead-bolt locks. In addition, we may be able to reduce your premium if you install a sprinkler system and burglar alarm that is monitored by the police. However, these systems can be costly. Before installing them, check with us to find out what is specifically required to qualify for a discount.
     
  • Stay with an insurer--Loyalty may have its advantages and translate into real money savings.
     
  • Look for private insurance first--The cost of private insurance is often equal to or less than that of government-sponsored insurance, especially if you live in a high-risk area (plagued by storms, fires, or crime).

Learn More...

Overview | Understanding The Basics | Types Of Insurance | Coverage Amounts
Choosing A Policy | Filing A Claim | Other Types Of Insurance | Home Safety Tips
Planning Concerns | Home Glossary

Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.