Reducing the Cost of Home Insurance
A Insurance Article Contributed by Deepak Cutting
The cost of home insurance can vary by hundreds of dollars. Here is how to save money:
Shop around for Good Home Insurance Rates
Prices vary. Some diligence here will save you money. You may use the Internet or your state insurance department to access information. Since you buy insurance for peace of mind, it is important to check the financial position of your insurance company. Rating companies such as Standard & Poor's will tell you about the financial health of your intended insurers. Here again, you may obtain the required information over the Internet, by visiting the rating company's web site.
Price alone must not be the deciding factor. As mentioned earlier, the financial standing of the insurer, as also their reputation in respect of handling claims must be taken into account. For their track record in respect of handling claims, your state insurance department will provide information.
Increase Your Deductibles
Deductible is that amount that you agree to pay, out of each claim. The insurance company will reduce the value of your every claim by that amount, before settling them. The higher you agree to forego as deductible, the lower will be your premium. For home insurance policies, it is worthwhile to consider whether you live in a disaster-prone area. If not, go for generous deductibles and save on premium.
Buy Your Other Insurance Policies Also from Your Home Insurer
Most insurance companies that sell home insurance also sell most other types of popular insurance policies. Insurance companies usually provide discounts ranging from 5% to 15%
for customer loyalty. If the terms of the cover and costs are similar, it pays to remain with the same insurance company for all your insurance needs. Also, if you continue with the same insurer for a number of years, there is a discount available on your premiums. These benefits bring down the costs. Group insurance is another avenue to look at. If your employer is arranging home insurance or if there is a way that you can take insurance as a group, your premium comes down considerably.
Insurance is Cheaper for Disaster Resistant Homes
Check with your home insurance agents what you must do to qualify for discounts on insurance costs on account of your home being resistant to natural disasters. Installing shatter proof glass, putting stronger roofing materials and similar protection will bring down your premium and also enhance the value of your house. Security devices such as smoke detector, burglar alarm etc., if fitted in your home, bring down the insurance premium.
Whereas the value of your house includes the cost of land PLUS the cost of building, it's value for insurance purposes will be simply the cost of building re-construction, in the event of a disaster. Ask for any other discounts that may become available.
Consider Home Insurance Costs When Buying the House
Your home insurance premium depends also on the proximity of your house to the fire hydrant, the type and age of electrical, plumbing and heating systems installed, the material used to construct the house and such similar considerations. Attention must be paid to the extent to which these factors will alter the home insurance premium, when arriving at the right price for that property.
