Homeowner’s Insurance: Your Hidden Monthly Savings
Most people when they get their homeowners insurance policy at the time they purchase their home--rarely ever compare their current plan to other options in the market to see if they could get a lower premium for the same amount of coverage. Shopping around every year or so could add up to some significant savings for you--just as if you were to refinance your overall mortgage. Don’t let a reduced policy lead you to believe you are realizing a savings. You have to make sure your coverages are adequate for the value of your home and personal items, then once you have those amount set, shop around to compare the policies while holding those other matters constant.
Keep in mind insurance companies will bundle products to offer you a lower rate--but bundling itself may be a detriment, not a benefit. Be ready to calculate the bundled savings of your auto insurance and your home insurance all at once. To do this, have your home insurance declarations page and policy summary along with your auto insurance declarations and policy coverages readily available.
Are Claims an Issue in the Last 5 Years
If you have had significant claims in the past 5 years, then getting a reduced policy is going to be challenging--but not impossible. Many homeowners have claims due to water damage, hail damage, or other common occurrences, so don’t be hesitant to ask anyway. Many times these things are not as damaging as one would believe. From our experience, shopping with an insurance broker can many times turn up premium rates that are remarkably lower than if you just called the typical household brand names.
More Than Just a Policy. It is Service and Reputation.
Naturally, you’ll want the best price — but you also want the right mix of coverage from a company that can afford to pay your claim if disaster strikes. Reliable customer service is a plus, too. Here’s how to take all those factors into account as you choose the best insurance company for your home. Homeowners insurance costs an average of about $135 a month in 2021, according to a expert analysis. But rates can vary dramatically because no two houses are the same, located in different regions of the U.S., and each insurer uses its own formula to calculate premiums and discounts which is not always as predictable as one would think.
You can shop for quotes online or by phone, or you can work with an insurance agent or broker to find the cheapest home insurance for you. Whichever route you choose, make sure to compare policies with similar coverage and deductibles. We suggest being thorough filling out our questionnaire so we can find the right options and right providers for your situation.
Research for Discounts
Most companies offer a standard set of home insurance discounts, such as savings for having multiple policies with the same insurer (for example, both home and auto insurance), installing safety and security devices in your home and avoiding claims for consecutive years.
Beyond those, you will see differences in both the number and type of discounts available. Matching the discounts your home is eligible to receive will ensure that you not only get the policy you want but also benefit from investments you have made in your home.