Insurance is a highly competitive business and the price
you pay for your homeowners insurance quote policy can vary by hundreds
of dollars, depending on the insurance company you buy your
homeowners insurance quotes policy from. Here are some things to consider when buying
homeowners insurance.
1. Raise your deductible.
Deductibles are the amount of money you have to pay toward
a loss before your insurance company starts to pay according
to the terms of your policy. Deductibles on homeowners policies
typically start at $250. By increasing your deductible to
$500, you could save up to 12 percent; $1,000, up to 24 percent;
$2,500, up to 30 percent; and $5,000, up to 37 percent, depending,
of course, on your insurance company.
2. 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.
3. When you buy a home...
Consider how much insuring it will cost. Because a new home's
electrical, heating and plumbing systems and overall structure
are likely to be in better shape than those of an older house,
insurers may offer you a discount of 8 to 15 percent if your
house is new. Check its construction, too. Brick, because
of its resistance to wind damage is better in the East; frame,
because of its resistance to earthquake damage, is better in
the West. Choosing wisely could cut your premium by 5 to 15
percent. Avoiding areas that are prone to floods can save
you $400 or so a year for flood insurance. Homeowners insurance
does not cover flood-related damage. If you do buy a house
in a flood-prone area, you'll have to buy a flood insurance
policy, too. Does your town have full-time or volunteer fire
service? And is your house close to a hydrant or fire station?
The closer your house is to firefighters and their equipment,
the lower your premium will be.
4. Insure your house, not the land.
The land under your house isn't at risk from theft, windstorm,
fire, and the other perils covered in your homeowners policy.
So don't include its value in deciding how much homeowners
insurance to buy. If you do, you'll pay a higher premium than
you should.
5. Increase your home security.
You can usually get discounts of at least 5 percent for a
smoke detector, burglar alarm, or dead-bolt locks. Some homeowners insurance quote companies
offer to cut your premium by as much as 15 or 20 percent if
you install a sophisticated sprinkler system and a fire and
burglar alarm that rings at the police station or other monitoring
facility. These systems aren't cheap and not every system
qualifies for the discount. Before you buy such a system,
find out what kind your insurer recommends and how much the
device would cost and how much you'd save on premiums.
