The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying homeowners insurance .When purchasing a first home, people often are overwhelmed by unexpected costs. In addition to the mortgage, there are many other expenses to consider such as property taxes, homeowners association fees, repairs, and homeowners insurance. For homeowners insurance, however, there are some things you can do to reduce your premium.
- 1. Multiple Policies and Loyal Customer Discount If you purchase your home insurance in conjunction with another policy like flood or auto, you could receive a multiple policies discount. You can save 5% – 15% for having two or more policies with the same insurance carrier. Be sure to price-check first to be positive that a multiple policy is cheaper than individual policies among other carriers. You may even get a discount just for being a loyal customer that has maintained insurance with a company over a period of time. Check with your insurance company to see if these discounts are available and how you can be eligible. If you have maintained insurance with one carrier for several years and are eligible for a loyal customer discount, find out if they offer a multiple policy discount on top of it.
Value of House vs Value of Whole Property Some people make the mistake of insuring their entire property, rather than just the portion that could be damaged – the actual structure(s). In the case of a hurricane or tornado, the ground will not be damaged by wind or flood. Make sure that you are insuring your property based on the cost of rebuilding your home and replacing valuables.
3. Increase Deductible Most insurance companies recommend a deductible of R 5 000. But, if you increase your deductible to R 10 000, you could save up to 25% on your insurance premiums. The deductible is the amount of money you have to pay before the insurance company has to pay on a claim. Remember, different coverage’s may call for different deductibles. For example, hurricane prone areas may have a separate deductible for wind damage, earthquake prone areas may have a separate deductible for your earthquake policy and hail storm prone areas may have a separate deductible for hail damage. Look at all the possibilities and if you choose to increase your deductible, make sure to keep at least that amount in a savings account in case of emergency.
4. Review Policy Limits We always want all of our possessions covered. But, sometimes values depreciate and we no longer need to pay a premium on an item that was worth R 50 000 three years ago that is only worth R 30 000 today. Check the actual value of your treasured possessions and see if you can reduce or even eliminate the floater. A floater is extra insurance that covers valuables not normally covered by standard homeowners insurance such as, high-end computers and other technological devices, expensive jewelry or valuable art work.
When you own retreat homes as a business you need to shop around for the best home insurance deal
As any good consumer would do to save money, Shop Around. The easiest way to shop around for the cheapest homeowners insurance is to find an independent insurance agency that represents a high number of insurance companies. If your insurance agent can quote you from a base of 15 or more insurance companies, you are more likely to get a better deal if you checked with a small agency that can only quote 5. Home insurance companies often target certain geographical areas and will offer a cheaper rate to those areas. The coverage’s all are all the same. No one insurance company offers a different coverage than the other. The only difference is service and price. Having a large amount of insurance companies to quote from ensures that you are getting the best possible price and best short term house insurance cover.