The next time you open a letter from the company that provides your homeowners insurance, you might be in for sticker shock. Across the country, state boards of insurance, are authorizing increase in rates in the neighborhood of ten percent, but as high as twenty percent in states like Florida. The rate hikes are due to the insurance companies goal, of having enough funds for paying out claims in the future. Wether it's wildfires in Texas, hurricanes on the east coast, or earthquakes in California, insurance companies have paid out large numbers of claims in the past five years. So what can you do to keep your homeowners insurance at a minimum?
This may seem obvious, but most consumers check with one, perhaps two sources to secure homeowners insurance. Obtain three different quotes, with similar coverage, and you will likely see a difference in costs.
Raise Your Deductible
The deductible is the amount of money the homeowner pays towards a loss, when they make a claim. Ask your insurance representative, for a quote with a $500 deductible and a one $1,000 deductible, to compare the difference.
Make Your Home Disaster Proof
While there is no way to make your home completely disaster proof, there are some steps you can take to make it stronger. In hurricane areas, that may be adding storm shutters or windows. In earthquake prone regions, you may want to look in to retrofitting your home to save on premiums.
Use The Same Insurance Company For Auto And Home
Most insurance companies will offer a discount for customers who insure their home and cars together. If you choose to shop around, make sure to ask your insurance company for quotes on every vehicle in you own, and your home.
Ask your insurance company representative how to lower your rate. More specifically, ask how they reward consumers with lower premiums. Good credit scores is an increasing factor in insurance quotes. Security alarms also provide discounts from most insurance providers. Perhaps you are retired or belong to a professional group that entitles you to a discount.
No one wants an increase in insurance, particularly in a tough economy. But use these tips for potential ways to save, so you don't get shocked when that policy comes up for renewal.