Is there anything that I may do in order to reduce my home insurance cost?
Total Comments: 7
Posted: Fri Jan 16, 2009 11:08 am Post Subject:
Shop around Carla. That's the best way. You may raise your deductibles in order to reduce your home insurance premiums. If you have other insurance policies too, then try and get home insurance from the same insurer. Getting multiple insurance policies from the same company might entitle you to certain discounts. If you have a good security system at your home the insurance company might offer you a policy with lower premiums or maybe some kind of a discount. Hope I could help :)
Posted: Fri Jan 16, 2009 11:46 am Post Subject:
Friends,
Our home is perhaps the biggest single investment that we can think of today. I say this since my home is my most valuable possession. But still I'd tell everyone to think wisely before investing more and more for the protection of a desired asset.
On the other hand you may start doing simple things in bits and pieces - you could start repairing different parts of your property and the adjoining areas. This would certainly reduce the risk of others getting hurt within your property. As a result of this the probabilities of your getting involved in lawsuits would also reduce.
Roddick
Posted: Sat Feb 28, 2009 12:13 am Post Subject:
Carla,
Sil's advice is good. Do those things! One of the biggest is bundling it with your car insurance to get a discount on both. Here are a couple more things to consider:
Do you pay the premium yourself, or is it funded through your mortgage company's escrow account? If you pay it yourself, does your company offer a discount for paying the full annual premium up front instead of in monthly installments? What about a discount for drafting your account automatically?
Have you done any renovations to the roof, plumbing system, HVAC, or electrical systems? Depending on the extent of the renovations, you might be able to get a discount. A new roof is less likely to be damaged in a storm, so some companies give a discount. A new electrical system with breaker box brought up to code is less likely to start a fire, etc.
Have you reviewed the overall amount of coverage on the dwelling? This should be for the full replacement cost in most cases. Most policies have an annual adjustment to the amount to keep you from getting behind due to inflation. (Some companies call this "Inflation Guard," but others use another name.) Go over it with your agent to determine how much coverage you really need. If it has been a few years, it might need to be adjusted. (Fair warning, however, the replacement cost might be HIGHER than your current policy's limit. In this case, you should RAISE the limit. It will cost you more, which is not what you were looking for, but you will know that you have enough coverage.)
I hope this helps. Good luck!
Posted: Sat Feb 28, 2009 03:49 pm Post Subject:
If I might add something to excellent advice?
Why does the cost concern you? Are you simply trying to cut back or are you in a more serious situation?
If you are simply trying to be wise, make sure you don't cut benefits just to save a hundred dollars a year. If you have a claim, you will pay dearly by not having the right coverage.
However, if your concerns are more financially related, such as having to choose between mortgage payment, food, and insurance, then you may find it necessary to scale back on benefits.
Good choices include liability amount (the amount you are covered for if someone sues you.), Coverage C (personal property, belongings in the home). Coverage C is 50% of A by default. Many companies will let you choose to make that 25%. Of course there is medical payments per person amounts and as someone so wisely mentioned, deductible.
If you have a mortgage, the coverage A and B are going to be fixed. You have no choice. You could, however, remove B altogether, but you will not be covered for structures not attached to your home such as a detached garage for example.
Posted: Sat Feb 28, 2009 04:19 pm Post Subject:
I know when I was calling around to get prices for home insurance I was surprised by how much they flucuated. One company was $100 cheaper a year and had better coverage. I would not just check out a few. Get yourself a pen and paper and list some companies. Call each and write down all the specifics. The ones that combine auto and home do offer decent discounts...sometimes up to 20%. Also having it directly debited from your checking account on a certain date will increase your savings.
One other suggestion is sometimes your bank will give you the names of decent companies. When we went for a loan a year or so ago they asked us if we would like their insurance person to call us even though we had insurance. The bank said they had the best rates around...and they did.
Posted: Mon Mar 02, 2009 08:18 am Post Subject:
One company was $100 cheaper a year and had better coverage.
You have to watch this. Some will draw you with cheaper rates, only to raise them a year later.
Posted: Mon Mar 02, 2009 03:39 pm Post Subject:
One company was $100 cheaper a year and had better coverage.
Dasfuk is right ... you have to watch this. Some companies do offer an intro rate and then raise it; while others offer a low rate because they do not pay claims very easily. Remember, price is what you pay, but value is what you get.
That being said, it can still pay to shop around. Many states publish a comparison of insurance prices on the state department of insurance website. They send a set of sample risks to each insurance company, and somebody at the company calculates their rates and sends them back to the DOI. (For years filling out these forms was one of my responsibilities.) As an example, a $150,000 frame house in Columbus, Ohio, ranges from $372 to $915. (See http://www.ohioinsurance.gov/ConsumServ/Ocs/CompleteGuides/CompleteHomeGuide.pdf.) This is a HUGE range of prices. This can be a helpful guide in deciding where to start your search.
Posted: Fri Jan 16, 2009 11:08 am Post Subject:
Shop around Carla. That's the best way. You may raise your deductibles in order to reduce your home insurance premiums. If you have other insurance policies too, then try and get home insurance from the same insurer. Getting multiple insurance policies from the same company might entitle you to certain discounts. If you have a good security system at your home the insurance company might offer you a policy with lower premiums or maybe some kind of a discount. Hope I could help :)
Posted: Fri Jan 16, 2009 11:46 am Post Subject:
Friends,
Our home is perhaps the biggest single investment that we can think of today. I say this since my home is my most valuable possession. But still I'd tell everyone to think wisely before investing more and more for the protection of a desired asset.
On the other hand you may start doing simple things in bits and pieces - you could start repairing different parts of your property and the adjoining areas. This would certainly reduce the risk of others getting hurt within your property. As a result of this the probabilities of your getting involved in lawsuits would also reduce.
Roddick
Posted: Sat Feb 28, 2009 12:13 am Post Subject:
Carla,
Sil's advice is good. Do those things! One of the biggest is bundling it with your car insurance to get a discount on both. Here are a couple more things to consider:
Do you pay the premium yourself, or is it funded through your mortgage company's escrow account? If you pay it yourself, does your company offer a discount for paying the full annual premium up front instead of in monthly installments? What about a discount for drafting your account automatically?
Have you done any renovations to the roof, plumbing system, HVAC, or electrical systems? Depending on the extent of the renovations, you might be able to get a discount. A new roof is less likely to be damaged in a storm, so some companies give a discount. A new electrical system with breaker box brought up to code is less likely to start a fire, etc.
Have you reviewed the overall amount of coverage on the dwelling? This should be for the full replacement cost in most cases. Most policies have an annual adjustment to the amount to keep you from getting behind due to inflation. (Some companies call this "Inflation Guard," but others use another name.) Go over it with your agent to determine how much coverage you really need. If it has been a few years, it might need to be adjusted. (Fair warning, however, the replacement cost might be HIGHER than your current policy's limit. In this case, you should RAISE the limit. It will cost you more, which is not what you were looking for, but you will know that you have enough coverage.)
I hope this helps. Good luck!
Posted: Sat Feb 28, 2009 03:49 pm Post Subject:
If I might add something to excellent advice?
Why does the cost concern you? Are you simply trying to cut back or are you in a more serious situation?
If you are simply trying to be wise, make sure you don't cut benefits just to save a hundred dollars a year. If you have a claim, you will pay dearly by not having the right coverage.
However, if your concerns are more financially related, such as having to choose between mortgage payment, food, and insurance, then you may find it necessary to scale back on benefits.
Good choices include liability amount (the amount you are covered for if someone sues you.), Coverage C (personal property, belongings in the home). Coverage C is 50% of A by default. Many companies will let you choose to make that 25%. Of course there is medical payments per person amounts and as someone so wisely mentioned, deductible.
If you have a mortgage, the coverage A and B are going to be fixed. You have no choice. You could, however, remove B altogether, but you will not be covered for structures not attached to your home such as a detached garage for example.
Posted: Sat Feb 28, 2009 04:19 pm Post Subject:
I know when I was calling around to get prices for home insurance I was surprised by how much they flucuated. One company was $100 cheaper a year and had better coverage. I would not just check out a few. Get yourself a pen and paper and list some companies. Call each and write down all the specifics. The ones that combine auto and home do offer decent discounts...sometimes up to 20%. Also having it directly debited from your checking account on a certain date will increase your savings.
One other suggestion is sometimes your bank will give you the names of decent companies. When we went for a loan a year or so ago they asked us if we would like their insurance person to call us even though we had insurance. The bank said they had the best rates around...and they did.
Posted: Mon Mar 02, 2009 08:18 am Post Subject:
One company was $100 cheaper a year and had better coverage.
You have to watch this. Some will draw you with cheaper rates, only to raise them a year later.
Posted: Mon Mar 02, 2009 03:39 pm Post Subject:
One company was $100 cheaper a year and had better coverage.
Dasfuk is right ... you have to watch this. Some companies do offer an intro rate and then raise it; while others offer a low rate because they do not pay claims very easily. Remember, price is what you pay, but value is what you get.
That being said, it can still pay to shop around. Many states publish a comparison of insurance prices on the state department of insurance website. They send a set of sample risks to each insurance company, and somebody at the company calculates their rates and sends them back to the DOI. (For years filling out these forms was one of my responsibilities.) As an example, a $150,000 frame house in Columbus, Ohio, ranges from $372 to $915. (See http://www.ohioinsurance.gov/ConsumServ/Ocs/CompleteGuides/CompleteHomeGuide.pdf.) This is a HUGE range of prices. This can be a helpful guide in deciding where to start your search.
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