How To Save Hundreds On Home Insurance
It's often possible to cut the cost of your homeowner's or
renter's insurance by 25% or more and save hundreds of
dollars every year.
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| 1. Home security upgrades. |
Save up to 15-20%.
Get dead-bolt locks and a burglar alarm (preferably one that's
monitored 24/7).
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| 2. Fire-fighting upgrades. |
Save up to 10%.
Fire alarms and extinguishers are worthwhile. A sprinkler system
is an excellent (but costly) upgrade.
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| 3. Raise your deductible. |
Save 15-25%.
Raising your deductible can save big money, especially if it's
currently lower than $200.
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| 4. Drop unneeded coverage. |
Save up to 20%.
Eliminate any "riders" or "floater" clauses that cover unlikely
losses. Insurance should cover no more than the rebuilding cost
-- don't include the value of the land. |
| 5. Shop around. |
Save up to 20%.
Home insurance prices from different companies can vary widely,
so shop around for a lower rate at sites such as InsWeb.com, MostChoice.com and NetQuote.com.
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| 6. Loyalty discounts. |
Save up to 20%.
Most companies offer a longevity discount for people who
stick with them. Often it's a 5% discount for staying 3-5 years,
and a 10% discount after six years. Retirees often
get an additional 10% discount.
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| 7. Avoid risk. |
Avoid anything that increases the risk perceived by your insurer
(for example a low credit score, or keeping a dangerous
pit bull, or having an accident-prone swimming
pool.)
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| 8. Claims-free discount. |
Save 10-15%.
If you avoid burglaries and don't make an insurance claim for
three to five years you may get this discount.
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| 9. Block watches. |
Save 5-10%.
If you organize a block watch, insurance rates and the crime rate
will both go down in your neighborhood.
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| 10. Live in a safe home. |
Save up to 20%.
Newer homes have fewer problems. In windstorm-prone areas,
consider brick homes; in earthquake zones, wood frames stand up
better. Avoid flood-prone and high-crime areas.
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Call your insurer and consult with them. Tell them about
your home improvement plans, make sure you're adequately covered,
and be sure to ask what other discounts they offer.
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Life
