The past few years have been challenging to homeowners all over the country due to an increase in storm activity, much of which has resulted in damages that were covered by home insurance policies. Weather related losses can affect a wide range of insurance customers located in a state or region. This creates a higher loss average for insurers and can result in higher premiums across-the-board as insurers strive to balance their risk with their income.
You may not be able to control the weather or prevent your insurance company from raising their rates, but by taking a few simple steps you can help fight the increases by creating your own opportunities for discounts and reducing the overall risks you represent to an insurer.
Look for Discounts
Insurance companies offer many opportunities for discounts that you may be able to take advantage of. Talk to your agent about the discounts you can get for bundling and customer loyalty. Often, just keeping the same insurer for number of years or placing multiple policies with them will give you a small break in your premiums.
Consider changes in how you pay your premiums for additional discounts. When you pay your home insurance premium in installments there is often a small fee imposed for the convenience. Paying your home insurance premium in one annual chunk or electronically can remove this fee.
Lastly, if you are in the market for a home, consider buying one of newer construction. Home insurance companies often offer discounts to buyers of brand-new homes and while those discounts can decrease over time, they can take a noticeable bite out of potential premiums.
Decrease Your Risks
Much of your home insurance premium is determined by the amount of risk you and your house bring to the table. When an insurance company is underwriting your application for home insurance it must evaluate how likely it is to receive various claims on your property. Older construction, poor safety measures, and historical claims experience for your area and type of home can all conspire to increase your premiums.
While you can do little to control the historical claims in your area, you can reduce the individual risks you present. Investing in anti-theft devices such as cameras and alarms can reduce your likelihood of theft and, as a result, your premiums. You can also complete certain home improvements that bring your dwelling up to code which reduces your overall risk of damage due to weather-related events. Some improvements you can make include investing in new windows, updating your roof, and installing storm-protection devices such as hurricane shutters.
To reduce the risk of damages by fire you can install smoke detectors, fire extinguishers and sprinkler systems in your home. By reducing your risk of wildfire or other blaze, your insurance company may likewise reduce your premium.
Another risk homeowners are exposed to is the risk of liabilities. Reducing this risk can also help lower insurance premiums. If you have a pool, hot tub or spa it's important to install the correct safety measures such as a fence or cover in order to prevent injuries. You can also talk to your insurance agent about breeds of dogs that are looked upon more kindly by your insurance company so that when you're ready to add one to the family, you don't inadvertently select one that causes your premium to increase.
Change Your Coverage
If you've exhausted your opportunities for discounts and premium reductions through decreasing your risks, you might consider adjusting your overall home insurance coverage.
By increasing your deductible (the amount you must pay out-of-pocket for damages caused by covered perils) you agree to absolve the insurance company of some of the risks you present. This will result in a lower premium but doesn't necessarily remove your financial responsibilities altogether. A higher deductible puts you at greater risk of a substantial financial outlay in the face of an insurable incident so it's not a decision that should be taken lightly.
You may also consider reducing your home insurance limits. The lower your limits are, the less your insurer can expect to pay out in a worst-case scenario. Your home insurance limits for the dwelling should reflect the rebuilding cost of your home. It's important that you get as close as possible to this cost when setting your limits; go too low and you could face an impossible financial battle getting your home rebuilt after a total loss as you would be responsible for paying the difference between the insurance benefit and actual rebuilding costs.
Your contents and liability limits can also be adjusted and lowered in order to reduce your premiums. Again, it is dangerous to do this without really considering the risks that you are taking on by having lower, and possibly insufficient, limits. When considering your contents limit, complete a home inventory first so that you can get an accurate idea of the total value of your contents. When considering liability limits, talk to your local agent about local claims history and reasonable limits.
We would love to work with you and help you adjust your home insurance policy so that it protects you and your family while still providing an affordable benefit. We work with many highly rated insurers and know which ones look more favorably on certain risks than others. Allow us to work with you and create an insurance plan you can afford and rely on.
You may not be able to control the weather or prevent your insurance company from raising their rates, but by taking a few simple steps you can help fight the increases by creating your own opportunities for discounts and reducing the overall risks you represent to an insurer.
Look for Discounts
Insurance companies offer many opportunities for discounts that you may be able to take advantage of. Talk to your agent about the discounts you can get for bundling and customer loyalty. Often, just keeping the same insurer for number of years or placing multiple policies with them will give you a small break in your premiums.
Consider changes in how you pay your premiums for additional discounts. When you pay your home insurance premium in installments there is often a small fee imposed for the convenience. Paying your home insurance premium in one annual chunk or electronically can remove this fee.
Lastly, if you are in the market for a home, consider buying one of newer construction. Home insurance companies often offer discounts to buyers of brand-new homes and while those discounts can decrease over time, they can take a noticeable bite out of potential premiums.
Decrease Your Risks
Much of your home insurance premium is determined by the amount of risk you and your house bring to the table. When an insurance company is underwriting your application for home insurance it must evaluate how likely it is to receive various claims on your property. Older construction, poor safety measures, and historical claims experience for your area and type of home can all conspire to increase your premiums.
While you can do little to control the historical claims in your area, you can reduce the individual risks you present. Investing in anti-theft devices such as cameras and alarms can reduce your likelihood of theft and, as a result, your premiums. You can also complete certain home improvements that bring your dwelling up to code which reduces your overall risk of damage due to weather-related events. Some improvements you can make include investing in new windows, updating your roof, and installing storm-protection devices such as hurricane shutters.
To reduce the risk of damages by fire you can install smoke detectors, fire extinguishers and sprinkler systems in your home. By reducing your risk of wildfire or other blaze, your insurance company may likewise reduce your premium.
Another risk homeowners are exposed to is the risk of liabilities. Reducing this risk can also help lower insurance premiums. If you have a pool, hot tub or spa it's important to install the correct safety measures such as a fence or cover in order to prevent injuries. You can also talk to your insurance agent about breeds of dogs that are looked upon more kindly by your insurance company so that when you're ready to add one to the family, you don't inadvertently select one that causes your premium to increase.
Change Your Coverage
If you've exhausted your opportunities for discounts and premium reductions through decreasing your risks, you might consider adjusting your overall home insurance coverage.
By increasing your deductible (the amount you must pay out-of-pocket for damages caused by covered perils) you agree to absolve the insurance company of some of the risks you present. This will result in a lower premium but doesn't necessarily remove your financial responsibilities altogether. A higher deductible puts you at greater risk of a substantial financial outlay in the face of an insurable incident so it's not a decision that should be taken lightly.
You may also consider reducing your home insurance limits. The lower your limits are, the less your insurer can expect to pay out in a worst-case scenario. Your home insurance limits for the dwelling should reflect the rebuilding cost of your home. It's important that you get as close as possible to this cost when setting your limits; go too low and you could face an impossible financial battle getting your home rebuilt after a total loss as you would be responsible for paying the difference between the insurance benefit and actual rebuilding costs.
Your contents and liability limits can also be adjusted and lowered in order to reduce your premiums. Again, it is dangerous to do this without really considering the risks that you are taking on by having lower, and possibly insufficient, limits. When considering your contents limit, complete a home inventory first so that you can get an accurate idea of the total value of your contents. When considering liability limits, talk to your local agent about local claims history and reasonable limits.
We would love to work with you and help you adjust your home insurance policy so that it protects you and your family while still providing an affordable benefit. We work with many highly rated insurers and know which ones look more favorably on certain risks than others. Allow us to work with you and create an insurance plan you can afford and rely on.
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