Agent, Rural Mutual Insurance Co., Union Grove, WI
The easiest way to typically save money on your homeowners insurance is by having your homeowners and auto coverage with the same company as most offer multi-policy discounts. If that is not an option or you already receive this discount then would more than likely be looking at lowing coverages next - never recommended. I would suggest contacting your local agent and advise them that you are looking to lower your rate to see if they are able to find any avenue to help you lower your rate.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The most expensive mistake a homeowner can make is to be underinsured. Regardless of what the premiums were, a single high value loss that exceeds the limits of the policy can make those saving immaterial. Setting adequate limits is absolutely crucial. The person that can help set appropriate limits is a reliable insurance agent.
This is a far greater problem than many think. The primary place where this shows up is having inadequate liability limits. Your homeowner’s policy provides liability coverage for personal injury and property damage law suits. The company pays all costs for a lawsuit up to the limits of the policy. After that the homeowner is facing the lawsuit alone. Most companies do not offer adequate liability limits and most policyholders select limits that are lower than the maximum offered by the company. An umbrella policy is necessary for most homeowners.
The second area that is often underinsured is valuable collections. The homeowner’s policy has internal limits for recovery on certain items. Most homeowner don’t know that their inherited sterling silver is woefully underinsured. They don’t understand that those guns in the cabinet could be destroyed and they would only get a fraction of their value. The same is true of jewelry, a coin collection, and many other items. This is all detailed inside the policy, but few homeowners ever read their policy.
Some people continue to underinsure their structure. While not as common it is an increasing phenomenon. A homeowner will improve the home and never inform the company or agent. In the event of a loss the amount of coverage might not return the home to its updated glory. This coverage is really inexpensive, however a loss can be paralyzing.
Some homeowners have multiple homes. The second homes are often in hazardous areas, such as lakefront, beach front and mountain property. The cost of replacing one of these homes can exceed the insured value because of inflated reconstruction costs. If a forest fire sweeps through some summer cottages, there will be a great demand for contractors to do the work and there will also be bidding for materials. It can get ugly.
So adequate insurance is the first step, the second step is to focus on the policy itself. Homeowners can often save significant money by increasing the deductibles on their policies. The deductible should be set at the amount of loss that could be absorbed without serious disruption to the family finances. That is often more than the deductible in the policy.
Companies traditionally offer discounts if coverages are packaged. Some companies cover a wide range of policies and by bringing those to a single carrier premium savings can often be realized. This is particularly true if you own another residence that you lease to someone else. Often extending liability coverage from you homeowner’s policy will save you money.
Companies often give discounts for loss prevention. The most common is the central station monitored alarm systems. While companies are rarely as generous as the alarm sales people indicate, there are savings to be had by simply providing a certificate of installation.
Sometimes the homeowner’s policy will be modified if substantial rehabilitation is done to the home. You would need to talk to your agent about this. You could also discuss the jewelry insurance if the jewelry is most often located in a safe deposit at the bank.
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This is a far greater problem than many think. The primary place where this shows up is having inadequate liability limits. Your homeowner’s policy provides liability coverage for personal injury and property damage law suits. The company pays all costs for a lawsuit up to the limits of the policy. After that the homeowner is facing the lawsuit alone. Most companies do not offer adequate liability limits and most policyholders select limits that are lower than the maximum offered by the company. An umbrella policy is necessary for most homeowners.
The second area that is often underinsured is valuable collections. The homeowner’s policy has internal limits for recovery on certain items. Most homeowner don’t know that their inherited sterling silver is woefully underinsured. They don’t understand that those guns in the cabinet could be destroyed and they would only get a fraction of their value. The same is true of jewelry, a coin collection, and many other items. This is all detailed inside the policy, but few homeowners ever read their policy.
Some people continue to underinsure their structure. While not as common it is an increasing phenomenon. A homeowner will improve the home and never inform the company or agent. In the event of a loss the amount of coverage might not return the home to its updated glory. This coverage is really inexpensive, however a loss can be paralyzing.
Some homeowners have multiple homes. The second homes are often in hazardous areas, such as lakefront, beach front and mountain property. The cost of replacing one of these homes can exceed the insured value because of inflated reconstruction costs. If a forest fire sweeps through some summer cottages, there will be a great demand for contractors to do the work and there will also be bidding for materials. It can get ugly.
So adequate insurance is the first step, the second step is to focus on the policy itself. Homeowners can often save significant money by increasing the deductibles on their policies. The deductible should be set at the amount of loss that could be absorbed without serious disruption to the family finances. That is often more than the deductible in the policy.
Companies traditionally offer discounts if coverages are packaged. Some companies cover a wide range of policies and by bringing those to a single carrier premium savings can often be realized. This is particularly true if you own another residence that you lease to someone else. Often extending liability coverage from you homeowner’s policy will save you money.
Companies often give discounts for loss prevention. The most common is the central station monitored alarm systems. While companies are rarely as generous as the alarm sales people indicate, there are savings to be had by simply providing a certificate of installation.
Sometimes the homeowner’s policy will be modified if substantial rehabilitation is done to the home. You would need to talk to your agent about this. You could also discuss the jewelry insurance if the jewelry is most often located in a safe deposit at the bank.