Tuesday, May 24, 2022

How To Lower Home Insurance

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How To Lower Homeowners Insurance Premiums

You can reduce your homeowners insurance costs by establishing a solid credit history, as homeowners insurance companies often use credit information to determine quotes. Having bad credit may make you seem like a high-risk customer, which will drive your premium up.

Maintain a solid credit score by keeping your credit balances low, paying your bills on time, being careful not to obtain more credit than you need, and by not opening too many credit cards.

How To Save On Your Insurance Policy

You may not be able to avoid an increase in your home insurance rates, but there are always ways to potentially lower your costs. Menuey suggests steps you can take to lower your home insurance premiums:

  • Compare the prices: Use an online broker or work with an independent agent to find an insurance company with the best coverage and the most competitive rates. Bundling your home, auto, and umbrella policies can save you a lot on your insurance policy.
  • Carry out routine maintenance: Reduce the potential for a claim by making sure your home systems are working properly. Menuey also recommends installing smart home technology to alert you to potential damage in your home.
  • Notify your agent of any changes to your property: Updating your home systems and installing a new roof if needed can help you save more on your policy. Also, its essential to talk to your agent about major home renovations, as they can affect the value of your home and the amount of coverage youll need.

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Get A Good Deal On Your Home Loan

As well as saving on insurance premiums, you can save on your home loan interest rates by having a home loan comparison service, such as ooba home loans, apply to multiple banks on your behalf, thus giving you the best chance of securing a good deal.

ooba home loans also offers a range of tools that make the home buying process easier. Start with their home loan calculators then use their free, online prequalification tool, the ooba Bond Indicator, to determine what you can afford. Finally, when youre ready, you can apply for a home loan.

Get pre-approved for a home loan in just 2 minutes

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Protect Your Home From Disasters

Here are a few updates you can make to keep your home safer and possibly get lower home insurance premiums:

  • Get a new roof: As we mentioned before, some insurance providers offer discounts for storm-proof roofing, and in general newer roofs are less likely to be damaged by storms than older roofs.
  • Update your electrical system: Updating your electrical system can reduce your risk of a home fire, so insurers may reward you with lower premiums.
  • Update your plumbing: Lower risk at home means lower home insurance costs. So new pipes which can help to avoid water damage at home can incentivize your insurance provider to lower the cost of your policy.

Pay Your Bill In Full

How to Reduce Homeowners Insurance

Most insurance companies charge you fees for making monthly insurance payments. Paying in full at the start of the billing cycle can help you save on your premium.

Though insurance costs may be on the rise, there are ways you can curb your premium. Knowing your options is the first step to saving on your homeowners insurance. Speaking to your insurance agent is also important when trying to reduce your insurance costs. An agent will know what coverage you need and what you dont need and be aware of insurance discounts you could qualify for. Because insurance is specific to the policyholder, your insurance agent can help you get the best insurance for you.

Wondering if you can save on your homeowners insurance? Call us today at to speak with one of our expert agents, or request a free quote:

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Install A Fence Around A Pool

If youâre wondering how to save money on home insurance, the cheapest approach is not having a pool at all, but if you have one, make sure that it is well fenced to prevent any unnecessary liability. If a small child falls into your pool, you may be held responsible. Because of the increased risk associated with pools, you will usually pay a higher premium. In fact, some municipalities require a locked fence around the pool at all times.

What Buildings Insurance Covers

Buildings insurance covers the structure of your property against insurable events such as fire, flood, lightning, wind, etc. It does not cover damage to your personal belongings inside or outside your home, such as clothing, furniture and electronic equipment. These would need to be covered under your household contents insurance.

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Ways To Lower Your Homeowners Insurance Costs

    Let’s face it, we’re all looking for ways to trim our expenses. Here are 12 ways to make sure that the value you are getting from your homeowners policy is real, and to ensure that you aren’t paying more than you need to.

  • Raise your deductibleDeductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.
  • Insure for replacement cost, not market valueThe housing market has dropped significantly, but that doesn’t mean the cost to rebuild your home has dropped as well. Insurance companies insure homes based on the amount it would cost to rebuild, including debris removal, architect fees, etc., not the assessed value of the home. In today’s economy, these two values can be drastically different. It is important to make sure your home is insured based on replacement cost, and that it does not include the cost of land.
  • Package your home & auto policies togetherSome companies that sell homeowners, auto and umbrella coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. Luckily, R& R Insurance represents numerous companies that do just that!
  • Review Your Policy Annually

    6 Tips For Lower Home Insurance Premium

    Life events or improvements to your home may qualify you for discounts or create new policy needs. Endorsements for such things as home office equipment or expensive possessions including Oriental rugs, grand pianos, or jewelry may not be necessary if the items are no longer in your home. A free policy review can help you understand whats covered by your policy, and can help you determine whether your needs are covered.

    Speak with an agent about potential home improvement and safety products that may reduce your insurance costs and regarding your eligibility for discounts.

    • Homeowners

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    Reduce Coverage On Older Cars

    Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelleys Blue Book . Review your coverage at renewal time to make sure your insurance needs havent changed.

    Bundle Your Insurance Policies

    Insurance companies will often offer discounts if you buy all your insurance through them. If you have your homeowners insurance with one company, your car insurance with another, and your life insurance with a third, consider bundling them under the same policy with a single company to see how much youll save.

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    Know How To Lower Home Insurance Premiums

    Knowing how to lower home insurance premiums is the first step to saving money on insurance costs.

    There are a lot of ways to decrease your premium payments. Be sure to take advantage of discounts, only pay for what you need, increase your deductibles if possible, and disaster-proof your home.

    If youre a homeowner, check out our blog for the best advice on how to make your house the home of your dreams.

    Increase Home Security Measures

    How to Lower Your Homeowners Insurance Premium ...

    Installing security measures, such as burglar and smoke alarms monitored centrally or tied to a local emergency response teams, can reduce your annual premiums. Installing an automatic water shut off valve is another excellent way to reduce costly water damage claims. To get discounts, you must provide proof of installation and central monitoring.

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    Get Rid Of Attractive Nuisances To Lower Your Liability Coverage

    An attractive nuisance is a feature or item on a property that could be a hazard, especially to young children who may not know the inherent risk of the item. Common attractive nuisances are pools, hot tubs, and other bodies of water, playgrounds, trampolines, and treehouses. These may seem like anything but a nuisance to you and your family, but they can be a nightmare for insurance companies. They increase the likelihood that youll need to file a costly home insurance claim due to injury. Claims made as a result of an attractive nuisance are typically covered under the liability portion of your homeowners insurance, so if you have an attractive nuisance on your property, youll need to make sure you have good liability coverage. Unfortunately, this comes at a price. If you need to lower the cost of your homeowners insurance, getting rid of attractive nuisances can greatly reduce it. If you rarely use your hot tub or your children no longer play with their trampoline, consider selling it to someone else, then notify your insurance company and ask them to reduce your liability coverage.

    Make Your House Safer

    Insurers see homes with damaged infrastructure and other risks as a potential source of costly claims. Many companies will lower your premiums if you pay to update the plumbing, electrical, and HVAC systems or install a security system to prevent theft. Such changes can reduce your premiums significantly and save you in the long run.

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    Luxury Homes Tend To Be More Expensive To Insurebut There Are Ways To Save

    As the cost of homeowners insurance continues to rise across the country, particularly in catastrophe-prone areas such as the West Coast and Florida, many luxury-home owners are seeking ways to reduce their premiums. Although the cost of coverage varies widely based on many factors, such as the size of a house, its age and location, there are discounts and credits available that can reduce premiums by up to thousands of dollars a year.

    According to the Insurance Information Institute, an industry trade group, the average premium for a homeowners policy rose 3.1% in 2018, the latest year for which statistics are available, to $1,249. But owners of luxury homes pay much more. High-end homes are more expensive to repair or replace than a standard home, said Loretta Worters, an Institute vice president. The home is usually far larger and may have special decorative moldings, luxury kitchens with imported Italian marble countertops, gold fixtures, murals, all more costly to replace.

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    From aspirational residences to major commercial deals.

    Discounts are also available for bundling other types of policies. Chubb, for example, offers up to 7.5% off, in most states, for bundling home and valuables coverage for jewelry, fine art, wine or other collectibles, according to Fran OBrien, division president of Chubb North America Personal Risk Services.

    Have you successfully lowered your homeowners insurance premium? Tell us how by joining the conversation below.

    How Much Does Home Insurance Cost

    3 Tips to Lower Your Homeowners Insurance Cost

    The average Canadian household pays $960 per year for home insurance. Individual premiums are based on wide-ranging factors such as a homes size, type, replacement value, location, age, construction quality, building materials, security features and proximity to a fire hydrant or fire station. Major home insurance companies and independent insurers also consider the value of a homes contents and how the property is used . They also look at aspects related to homeowners themselves, such as age and claims history.

    Your premium will also depend on your level of coverage. Below are the four policy options, from most to least coverage. Note that whichever type you get, valuables like jewellery, furniture, art and sports gear typically have coverage limits, so you may want additional insurance for these.

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    Get A Second Opinion By Requesting A Home Inspection

    All homes are given a fire inspection class rating based on their distance from fire stations. If your home hasnt been inspected recently, it may be worth it to have an insurance agent rate it. If the agent finds that you are closer to a fire station than your original rating stated, you might be able to negotiate with the county to get a better score. You can then negotiate for lower homeowners insurance premiums. Similarly, in Florida, a positive wind mitigation report from an inspector may cut your insurance premiums by a large amount.

    Reduce Your Homeowners Insurance Premium Without Losing Benefits

    Deborah Fowles was a financial planning and budgeting expert for The Balance who spent over a decade contributing her expertise. She worked in a variety of fields prior to diving into writing, including pathology and marketing. In addition to publishing two books about personal finance, she wrote poetry, for which she won the Poetry Guild’s Award for outstanding poetry composition in 1997.

      Purchasing a home can provide benefits to the owner, but the investment must be protected with homeowner’s insurance. The premiums of this necessary insurance coverage, like the property taxes charged by your local community, are expenses that will continue as long as you own the structure. While there are not many actions you can take to reduce your tax obligation, there are ways to lower the premium you pay for homeowners insurance.

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      Tips To Lower Your Home Insurance Premiums

      According to the Wall Street Journal, nationwide premiums increased 11.4% on average between 2017 and 2020, about 3.5% more than inflation during that same period.

      Prices have increased at an even faster pace this year, rising 25% or more in parts of California and Florida.

      The average annual homeowners insurance premium in the United States is now $1,398.

      Lumber costs have risen 42% since September 2017. A higher volume of natural disaster claims, supply chain shortages and other homebuilding materials going up in price are among the factors pushing up insurance costs, the Wall Street Journal reported.

      Fortunately, there are ways you can lower your home insurance premiums. Keep reading to see which of these may apply to you.

      Working From Home Has Costs

      Top 10 Tips On How To Lower Your Home Insurance

      The more people that come to your property, the more liability claims that could occur. Plus, any added business equipment needs to be insured as well. Knowing how home businesses can affect policies is good information to have before you start your entrepreneurial adventure. Your agent may also help you protect against any additional needed liability risks via one of our umbrella policies.

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      Fight Your Flood Risk

      Flood damage is the likeliest insurance claim a homeowner will make in the U.S. Whether or not your dream home is located in a known flood zone, its smart to do your research on how best to outfit your home and property to reduce your homes risk.

      Would your home benefit from elevating your utilities or flood-proofing your landscaping, for example? Check in with your neighbors to ask what theyre doing and what theyve been through in the past. If you live in an area with a high risk of flooding, talk to an insurance expert about adding flood insurance to your policy. A typical homeowners insurance policy doesnt cover flood damageand with the average flood repair costing an average of $30,000, you wouldn’t want to be left out in the rain.

      Decide Carefully About Making Claims

      Claims can drive up your premium. A large number of claims could cause insurance companies to see you as a high-risk customer. Depending on your carrier, you could even face cancellation for filing too many claims. If its a minor claim that you can afford to pay out of pocket, it could save you money, in the long run, to pay for it yourself.

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      Account For Home Improvements

      If you’ve improved your home, you may have made yourself eligible for homeowners insurance discounts without even realizing it. Adding features such as storm shutters and impact-resistant roofing which make your house tougher to damage could result in insurance savings. You might also earn a discount by upgrading outdated plumbing and electrical systems.

      You can often request a new inspection of your home to evaluate these improvements to maximize your potential discounts, says Jessica Hanna, spokesperson for the American Property Casualty Insurance Association.

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      Get The Right Appraisal

      How to lower your home insurance in Florida

      When it comes to home insurance your level of cover should be based on the estimated cost of a rebuild including labour and materials, not on the sale value of your property. This is important to remember because rebuild costs are usually much less than your propertys market value, particularly in urban areas.

      While most insurers will have their own house rebuild calculators, you can always head over to the SCSIs site and use theirs which will tell you what the actual cost is based on your house type, square footage and location.

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