April 21st 2009

Tips to keep you home insurance low

1. Shop around

Take your time before get your home owners insurance. Get referrals from people you know and do your research. The National association of Insurance Commissioners www.naic.org will have great information for you.

2. Keep your deductible high

The higher you're deductible is the better your premium will be. When you can afford a $1000 deductible you can safe up to 25% on your premium, most insurance companies asking for a $500 deducible.

3. Don't include the land in your insurance

The price you paid for your home includes the land it stands on (in most states) and it is not in risk of being stolen or fire. It will always be there.....so don't include it.

4. Keep all your policies with one company

When you keep all of your policies wit one insurance company like the house and your auto you can safe with a multi policy discount. Pending in the insurance company it can vary between 5-15%

5. Disaster proof your home for your area.

You may be able to safe on your premium when you retrofit your home to make it more resistant to windstorms and older homes may get a break when they are being modernized with new heating, plumbing and electric. You need to contact your insurance agent for further assistant on this.

6. Add to your home security

Adding a smoke detector, fire extinguisher, deadbolt locks and a monitored security system could give you a possible insurance discount of 5%. Before you do any modifications like this contact your insurance agent for recommendations.

7. Look for other discounts

Not smoking will get you discount with some insurance companies, also when you are 55 and older and retired and you stay at home you could qualify for another discount.

8. Credit Score

Keep a good credit score, the better your credit the better will be your insurance premium. Make sure you check your credit on an annually basis.

9. Don't move from insurance company to insurance company

Some insurance company give special  discounts for long term policy holders, the longer you stay the higher the discount will be. You could be eligible for discounts from 5-10%.

10. Annual policy review

Did you add a floater for the high end computer you no longer owned or grandma's jewelry you have sold at auction? Check and see if you had something included in your policy that you no longer own and you have covered and when you don't cancel it and pocket the difference.

11. Private insurance VS. Government plan

Government plans are higher then private insurance plans, and in some high risk areas that is only what you could find. Still check and see if there are possible private insurance carriers who might insure homes in a high risk area. A high risk area is for instance along the coast and areas of high crime.

12. Shop for insurance before you buy

 Call your insurance company before you buy and they will let you know what type of home will be more reasonable with the insurance premium.  Some things the insurance company will take in to account are the age of the home, the age of all of the systems (plumbing, heating) age of the roof, and possible the type of siding.

13. Check the CLUE Report

Even for homes now you can find a report where you can see the insurance claims history of the home you want to buy. With this could judge what potential problems the property might be able to have.

14. Other insurance

Don't forget that when your future house is in a flood plain you have to get flood insurance. That could add in an average annually about $400 to your insurance cost.

When your house is in an earthquake prone area you also need to buy a separate earthquake policy. Earthquake is not covered under a standard policy.

Disclaimer: I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your agent or legal counsel.

Bettina Settles