Homeowners insurance is a necessary part of home ownership. Insurance protects you from damage caused by weather, theft, or fire. Many homeowners would appreciate the coverage even more if it was possible to reduce the premiums without losing the beneficial coverage provided by a policy. Fortunately, there are several ways to lower the premium that won’t cause the policy itself to change.
One option is to select a Named Peril policy. This policy will cover only the damages specifically described within it. Anything outside the specifics would not be covered. This type of policy is less expensive than an All Risk policy, which covers any and all risks unless excluded. Of course, a Named Peril would mean that the homeowner is at risk of non covered damage that could be costly. Consider this when choosing.
Raising the deductible for claims is another way to decrease premiums. By providing a higher deductible, the insurance company would have less out of pocket expenses in the event of a claim. The homeowner would have to cover costs up to the deductible level. Before selecting this arrangement, make sure that the deductible you choose is within your means to pay in the event of a claim.
Another option would be to combine or bundle multiple insurance policies. Perhaps your homeowners insurance company would also cover your vehicle. Maybe you have a vacation home that also needs coverage. Some companies will give a 5-10 percent discount for bundling different plans. Discussing this option is definitely worthwhile. Some companies even offer a loyalty discount. After so many years of continued coverage, you may be eligible for this type of reduction. It is wise to ask about any other discounts that the company is offering that you may qualify for.
Joining a group coverage policy is another great way to lower premiums. Several larger companies offer the option for homeowners insurance at a discounted rate. AARP is an example of group coverage. One insurance company covers all members who choose this method, but it is applied for through the organization itself. Some colleges also have such options for alumnae.
There are also home improvements that can be done to reduce the insurance premium. Updating your systems, such as plumbing and electrical can improve your chances of lowering the premium. It is also a good idea to make sure the house has many smoke and/or carbon monoxide detectors.A burglar alarm or even a sprinkler system can cause a decrease. Talking with your agent before installing a pool or purchasing a pet is also recommended. Premiums can change based on how accessible a pool may be or what type of pet you may select.
The most important thing to remember while searching for the best deal is to look around. Be sure that the policy you choose covers what you want. Speak to an agent anytime you have questions regarding your current policy or any changes in it. It can sometimes be the small things that save you a lot in the long run.
Dena Davis is an Austin Real Estate Agent with a focus on the local neighborhoods. The Davis Company has developed relationships with Austin Residents, Commercial Real Estate Owners and buyers through out the Round Rock and Austin Area. To learn more find her at: www.daviscompany.com
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