If you are a homeowner, I am sure the past couple of years you have seen your home insurance premiums go up significantly. With the cost of energy, materials, and labor skyrocketing, insurance carriers have to respond by raising rates to ensure solvency to pay their claims. This leaves you and me as the consumer paying more for what seems like…EVERYTHING!
With costs going up, I am seeing a lot of consumers cutting coverages to save money. This move can end up being a financial disaster. The list below is designed to be a helpful guide to help save on the cost of home insurance without getting rid of any coverage.
So what can we do to save?
Talk to your agent about any recent renovations to your home.
Renovations to your home’s systems (Roof, Plumbing, Electrical, HVAC) can provide some generous discounts. Insurers have all the data in the world and have noticed that older systems break (go figure!) and when they break damage is caused to the home in many forms that could end up in a costly claim. If you have renovated or replaced your systems the likelihood of it breaking decreases greatly, and insurance companies will provide discounts for the decreased risk.
Have your home and auto insurance with the same company (A.K.A. Bundling).
You hear it everywhere and it is like a broken record. “Bundle and Save!” While this message plastered all over the place can be tiresome, it is also very true. Insurance carriers will offer sizable discounts for having your home and auto insurance with them. We have seen discounts up to 28% on your home insurance just for this alone, making it certainly worth checking out.
Look at possibly increasing your deductible.
Insurance is characterized as the transfer of risk from you to the carrier. If you opt to take a little more risk on yourself by raising your deductible it provides less risk for the insurance company. Less Risk, Lower rate.
**While this may be a great option to save, it is always advised to have an emergency savings fund in the event something does happen you have the funds to pay your deductible
Be mindful of submitting home insurance claims.
This is more hindsight advising if you are already paying for a claim surcharge, but it still rings true. Home insurance is designed to protect you against catastrophic loss. Too many times we witness someone calling in a home claim for small items like a broken window or a couple of pieces of drywall getting wet which equals out to a small number of damages. Using your insurance for this will, unfortunately, end up having you pay more for your insurance with surcharges and loss of claims free discounts than the damage ever was. Ask any seasoned agent or broker and they will tell you that they won’t call in a home claim unless their “roof is sitting in the neighbors’ yard”. Use the policy for big instances, not every little thing.
Work with an independent agent or broker.
Independent insurance agents have access to numerous home insurance carriers in your local market. They can shop around for your best rate and coverage combo on your behalf and find you the best value.
By utilizing one or all of these steps you could be well on your way to saving on your home insurance without sacrificing any coverage that you should have. If you would like to discuss any of these steps with a home insurance professional, you can contact any one of the specialists at The Staples Agency and be on your way to a well priced, strong policy, that provides the peace of mind you should have.