7 Ways to Save Money on Homeowner’s Insurance
Buying insurance (of any kind) must rank pretty high on the “Least Favorite Adult Chores To-Do” list. As tedious and time-consuming as this can be, it is an unavoidable expense that comes along with buying & owning a home in SW Florida. That’s why you want to take your time with research and not rush through the process. This can save you money – and who doesn’t want to save money?
How much money? Well, that depends. How much you’ll pay on insurance depends on many factors such as how old your home is, the location, etc. but according to NAIC.org, the average annual premium for homeowners’ insurance is around $1,200. It may seem pricey but remember that if anything happens to your home, you have the assurance that you will be reimbursed. Keep in mind, many home loans require that you have & keep a certain level of homeowners insurance.
- Homework Time – Find the BEST of the BEST
The first step is to find out which type of coverage you’ll need. Standard home insurance is what most people need, so start there. Make sure to get several (3-5) quotes. And with technology the way it is, it’s super easy to gather quotes using online portals from company websites. Search for a company that has good, solid ratings. Too many complaints could be a red flag that signals you to pass that company on by. You may want to talk to friends & family for referrals too.
- Discounts – Yes, please!
There may be discounted rates available, and you want to take advantage of every single one you can. You could get a discount by paying your annual premium in full, employer or association discounts, and even by bundling your home insurance with other insurance policies (i.e., car insurance) if you use the same insurer. When you’re speaking to an agent, make sure to ask which discounts you qualify for.
If you’ve had your policy for a while and have never had to make a claim, call, and ask your insurer about a claims-free discount. Many companies offer this, and many homeowners don’t know about it! It’s worth asking about!
- Bump Up Your Deductible
It’s common for us to choose the lowest deductible amount. Typically, for homeowners insurance, that number is $1,000. If you’re willing to bump up your deductible amount, you could save 10-20% on your premium (depending on the insurance company & the amount you’re increasing your deductible to).
Now that we’ve talked a little about how to get the BEST policy for your home depending on your needs and price, let’s talk about how you can save money on insurance by keeping your home SAFE!
- Time to Beef Up Your Home Security
According to highsecurityhome.org, 83% of home invaders look to see if the home has a security system of some kind installed before deciding whether to break in. More alarming (pun intended) is that NOT having a security system in place increases the likelihood that your house will be robbed by a whopping 300%. These statistics are just some of the reasons why having a home security in place can score you a discount on insurance.
Having security installed in your home protects you and your belongings from would-be burglars and can help protect your home from damage that could be caused by a break-in. The more security features you have, the higher your insurance discount might be.
- Install a Water Shut-Off Device
Burst pipes happen often and are a huge stress to deal with. Water damage claims is one of the leading claims seen by homeowners insurance companies. A proactive measure you can take to avoid this happening to you is to install a water shut-off device. This device is installed onto the main water pipe that comes into your home. This device can sense if water is flowing for an extended period or if there is too much excess water. So, if a pipe bursts and you’re not at home, the water won’t just be running into your home, causing further damage.
- You’ve Got Home Security, How About Fire Safety?
…And, we’re not just talking about smoke detectors and CO detectors. We’re talking water safety systems, AKA, fire sprinklers. Installing some could also earn you another discount on insurance. If there is a fire inside the home, these systems respond and can save your home from total ruin. If smoke, heat, and flames are detected, the sprinklers quickly release water or other flame retardants to contain the fire.
- Say Goodbye to High-Risk Items
We all want that hot tub or pool, treehouse & trampolines for the kids, but did you know that insurers consider these “attractive nuisance” items? These items carry a significant amount of risk, especially risk of injury. So, if you’ve got these items on your property, your home insurance is going to be higher. Decide whether these items are worth the higher cost of insurance. If you decide they are not, removing them could get you some serious savings on your insurance policy.
In closing, we want to leave you with this bonus tip: Ask Questions and Negotiate. As you’re shopping around for the best home insurance in SW Florida, know that there is nothing wrong with asking as many questions as you can. You also want to negotiate if possible. Go through your policy very carefully and if there are features that don’t apply to you & your home, see if they can remove the items and amend the policy down to a lower premiu
